Colorado Springs Needs 27,000 More Homes. Here's What That Means for You.
A new regional study says Colorado Springs faces a 27,000-unit housing shortage — and it's growing. Here's what buyers and sellers should understand about this gap and how it affects your next move.
If you've been wondering why it still feels hard to find the right home in Colorado Springs — even with more listings on the market than a couple of years ago — here's the short answer: we don't have enough houses. And it's not a feeling. It's a number.
The Gap Is Real
A regional housing assessment conducted for the Pikes Peak area confirmed what many of us in the market already sensed: El Paso County faces a shortage of roughly 27,000 housing units. That's not a projection or a guess — that's the gap between the homes we have and the homes our population actually needs. And the study projects that shortage could grow to more than 60,000 units by 2035 if construction doesn't pick up significantly.
What does that mean in everyday terms? It means demand continues to outpace supply in the neighborhoods and price points where most buyers are looking. It means builders can't break ground fast enough. And it means the affordability challenge isn't going away on its own.
Why This Matters If You're Buying
We know the market feels more balanced than it did during the pandemic frenzy — and it is. There are more homes to choose from, fewer bidding wars, and builders offering real incentives like rate buydowns and closing cost credits. That's genuinely good news for buyers.
But here's the part that doesn't make the headlines: even with inventory up about 45 percent compared to last year, we're still well below what a healthy market needs. Homes in the $350,000 to $500,000 range — the sweet spot for most first-time buyers and move-up families — are still moving quickly when they're priced and presented well. The shortage means there's a floor under prices. A major correction isn't coming, even if the pace has slowed.
If you're waiting for prices to drop significantly, we'd rather give you an honest assessment than let you sit on the sidelines hoping for something the data doesn't support. That doesn't mean rush into anything — it means get clear on your budget, get pre-approved, and be ready when the right home shows up.
Why This Matters If You're Selling
Sellers, this shortage works in your favor — but only if you play it smart. The days of listing any home at any price and getting multiple offers are behind us. But well-priced homes in good condition, in desirable areas, still sell. And the structural shortage means your home likely has more equity than you think.
What we're seeing is that sellers who take time to prepare — a little staging, good photography, realistic pricing from day one — are getting strong results. Sellers who price aspirational and "see what happens" are sitting. The market rewards preparation right now.
"The shortage isn't going away. But understanding it — instead of just reacting to headlines — is what separates sellers who succeed from sellers who stall."
— Lane Morrell
What New Construction Is Doing About It
The good news: builders are active. Communities like Sterling Ranch, Banning Lewis Ranch, and Wolf Ranch continue to add inventory, and single-family building permits held steady in 2025 at nearly 3,000 for the year. New construction isn't solving the shortage overnight, but it's providing options — especially for buyers who want modern floor plans, energy efficiency, and builder warranties that older homes can't match.
And here's something we tell every client considering new construction: builder incentives are real and they're competitive right now. Rate buydowns, upgraded finishes, closing cost credits — these are worth tens of thousands of dollars over the life of your loan. Make sure you're comparing new and resale options side by side before you decide.
The Bottom Line
Colorado Springs is still one of the most desirable markets in the country — and that demand, combined with a genuine housing shortage, means this market has more stability than you might expect. Whether you're buying your first home, moving up, downsizing, or relocating from out of state, the most important thing is making a decision based on real data and clear advice, not fear or speculation.
That's what we're here for. Reach out anytime — we'll give you the honest picture and help you figure out your next step.
Here when you're ready,
Jeff & Lane Morrell
Sources: Pikes Peak Regional Housing Assessment (coloradosprings.gov), Gazette reporting on housing shortage projections, regional MLS inventory data, Pikes Peak Regional Building Department permit data.