Why Colorado Springs Homeowners Are Choosing to Renovate Instead of Move
More homeowners are fixing up their current home rather than selling. Here's what we're seeing in Colorado Springs and what it means if you've been thinking about your own home.
We've noticed something interesting over the last year. More of our conversations in Colorado Springs aren't about selling -- they're about staying. Homeowners who might have listed their home a few years ago are now asking us: "Should we renovate instead?"
It makes sense. If you bought or refinanced between 2020 and 2022, your mortgage rate is probably somewhere around 3%. Moving today means giving that up and taking on a rate in the low 6% range. On a $500,000 loan, that difference is roughly $800 to $1,000 more per month in interest alone. That number changes the math for a lot of people.
A recent Bank of America report found that more than a quarter of homeowners are now using money they had set aside for a next home to renovate their current one instead. Nationally, about two-thirds of recent renovators chose to upgrade their current home rather than move. And those numbers feel right based on what we're seeing here in El Paso County.
What Colorado Springs Homeowners Are Actually Doing
The projects we hear about most often fall into a few categories:
- Kitchen and primary bath remodels. These are the rooms that make you fall back in love with your home. Opening up a cramped kitchen, adding an island, updating countertops to something low-maintenance like quartz -- these changes have the biggest daily impact and also hold their value well when you eventually do sell.
- Outdoor living spaces. Colorado Springs weather lets you use your yard nine months out of the year. Covered patios, composite decking that doesn't need staining, outdoor kitchens, and fire pits are all trending right now. Homes with well-designed outdoor spaces consistently sell faster and for more than comparable homes without them.
- Finishing basements or adding flex space. With more people working from home at least part of the time, having a dedicated office or separate space for kids and guests has gone from nice-to-have to almost essential. A finished basement is one of the higher-ROI projects you can do in this market.
- Energy-efficient upgrades. Colorado Springs Utilities offers rebates for everything from heat pump water heaters to insulation improvements. Smart thermostats, solar panels, and energy-efficient windows not only lower monthly bills -- they're becoming features buyers expect, especially in newer neighborhoods like Cordera and Wolf Ranch.
When It Makes Sense to Renovate
Not every home is a good candidate for a remodel instead of a sale. Here's what we ask our clients:
- Do you like your location? If you love your neighborhood, your commute, your school zone, and your lot -- keeping the home and fixing what doesn't work is almost always smarter than chasing something unknown.
- Is your floor plan functional? You can change finishes, counters, and fixtures. You can't easily move load-bearing walls or add square footage where there's no room to expand. If the layout itself frustrates you every day, moving might still be the better call.
- Does the math work for you? We can help you run the numbers. What would a renovation cost vs. the monthly payment increase of buying at today's rates? For many families right now, a $60,000 kitchen remodel that makes them happy for the next five years looks a lot more attractive than taking on a new mortgage payment that's $800 higher per month.
When It Makes Sense to Still Sell
We want to be honest here -- renovating isn't the right choice for everyone. If you've outgrown your home entirely, if your needs have changed (aging parents moving in, kids leaving, a new job on the other side of town), or if you're just ready for a different chapter, selling and moving is the right move. The market in Colorado Springs is still strong for sellers who price well and present their home well. You don't have to stay just because rates are higher than they were.
But if you like where you live and just wish a few things were different -- you might be part of that growing group of homeowners who are choosing to make what they have even better.
"There's nothing wrong with wanting something new. But we've seen too many people sell a home they actually loved because they thought moving was their only option. Sometimes a few smart updates change everything."
-- Jeff & Lane Morrell
If you've been wondering whether to stay or go, we'd love to walk through your home with you and give you an honest take. We'll tell you what improvements might add the most value -- and whether the right answer is a renovation, a sale, or just a fresh coat of paint and some new fixtures.