Downtown Colorado Springs Is Being Transformed: What the Apartment Boom Means for Homeowners and Neighbors
A record number of apartments are under construction in Colorado Springs. Here's how the new supply of housing is shaping the market for buyers, sellers, and everyone who lives here.
If you have driven through downtown Colorado Springs lately, you have noticed the cranes. Apartment construction in the Pikes Peak region is at levels we have not seen in years, and it is changing the look of the city. But here is the real question for homeowners and buyers: what does all this new housing actually mean for you?
The Numbers Are Hard to Miss
In 2025 alone, builders completed roughly 4,100 apartment units across El Paso County. Another 4,500 are under construction right now. That is nearly double the number of permits issued a few years earlier, and those units are coming online throughout this year and into 2027.
Here are a few of the projects making the biggest impact:
- Sierra Junction Apartments on the south side. 368 units under construction, adding rental supply near Fort Carson and the airport corridor.
- Draper Commons Phase Three. 200 units of middle-class affordable housing downtown, with construction beginning this spring. This is the kind of infill that makes a real difference for workforce families.
- The Maverick in Monument. 300 apartment units planned for the north end of the county, serving the growing corridor toward Denver.
And that is just a few of the larger projects. Smaller multifamily developments are filling in across Briargate, the Powers corridor, and the downtown core.
What This Means for the Single-Family Market
A common question we hear: "If so many apartments are being built, won't that hurt home values?" The short answer is no, not in the way most people worry about. Here is why.
Colorado Springs has a structural housing shortage. A recent regional study estimated the city needs roughly 27,000 more homes just to meet current demand. The apartments being built now are only beginning to close that gap. They are not creating a surplus.
What they are doing is giving renters more options. That is good for the entire market. When renters have choices, it takes pressure off the entry-level single-family market. Fewer bidding wars on starter homes. More time for first-time buyers to find the right property. That is a healthier market for everyone.
"More housing options at every level is good for Colorado Springs. Apartments aren't competition for single-family homes. They are an outlet valve, and we have needed one for years."
Lane Morrell
What About Affordable Housing?
Projects like Draper Commons are addressing a specific need. Middle-class affordable housing, priced for teachers, nurses, first responders, and young professionals, has been in short supply in Colorado Springs for over a decade. These units help keep the workforce in town instead of forcing a longer commute from Fountain or Pueblo.
For sellers, this matters because it makes Colorado Springs more attractive to employers. Companies considering relocation or expansion look at housing affordability for their employees. More attainable housing means more jobs coming into the area. That benefits homeowners at every price point.
What We Are Watching
The rental market is already beginning to soften slightly. With new supply coming online, we expect rent growth to slow down. That could make Colorado Springs more competitive with other Front Range cities for new residents. That would be a positive for the local economy longer term.
For buyers, the takeaway is this: if you are looking for a home in Colorado Springs, the market is not flooded with new single-family inventory. But the overall housing landscape is shifting in a way that gives you more breathing room than buyers had in 2021 or 2022.
If you are selling, understand that your home is competing with more options than it was a few years ago. That does not mean you cannot get top dollar. It means pricing and presentation matter more than they did when inventory was at rock bottom.
The Bottom Line
Colorado Springs is growing up. The apartment boom is a sign of a healthy, maturing city that is responding to demand. For homeowners, the rising tide of new development lifts the whole market: values stay supported while options increase for buyers.
If you are wondering how these changes affect your specific neighborhood or price range, give us a call. We track every part of this market, and we are happy to give you an honest picture of where things stand for you.