After years of uncertainty in the U.S. housing market caused by high prices and high mortgage rates, Colorado Springs has emerged as the hottest market in the country, according to Realtor.com.
In 2025, Colorado Springs is predicted to be a leader in sale and price growth rates year over year, with an anticipated 27.1% increase in home sales and 12.7% increase in home prices.
Although the Springs and its housing market have grown significantly in recent decades, it’s not too late for savvy real estate investors to make a profit on reasonably priced real estate — if you know where to look.
Colorado Springs is an ideal location for investment because of its strong rental demand, potential for appreciation and relative affordability compared to other cities on Colorado’s Front Range, like Denver and Boulder. It also boasts a wide range of potential renters, from military service members assigned to one of the region’s several large bases to students at local colleges, such as Colorado College or the University of Colorado at Colorado Springs.
If you’re interested in investing in real estate in the Springs but wary of the city’s median listing price of $460,000, consider these five neighborhoods, where it’s still possible to find homes under $400,000.
Why Invest in Colorado Springs Real Estate?
There are plenty of reasons why Colorado Springs could be the perfect place to invest in real estate, from its steady housing market growth to its appealing rental market.
The average home value in Colorado Springs is $452,639, according to Zillow — up from $335,543 five years earlier. Although the market has slowed down in recent years, in line with national trends, Realtor.com’s predictions should assure investors that Colorado Springs is on an upward trajectory.
When it comes to renter demand, Colorado Springs’ rental market temperature is considered warm, and its vacancy rate in multifamily rentals was 7.4% in the last quarter of 2024.
The city also has strong economic drivers that draw in potential renters, including its five military bases: Cheyenne Mountain Space Force Station, Fort Carson, Peterson Space Force Base, Schriever Space Force Base and the U.S. Air Force Academy. (In its analysis of the country’s top housing markets, Realtor.com noted that 31.4% of Colorado Springs households include an active-duty military service member or veteran, well above the share across the 100 largest metro areas, which is 1 in 8.) Colorado Springs is also home to several universities and a growing tech industry.
And finally, it’s simply a great place to live. The Springs was recently named the third-best place to live in the country by U.S. News & World Report, which cited its access to the outdoors and stunning views, among other perks.
As Colorado’s second-largest city by population — coming in at a total of 488,670 residents — in an extremely desirable state, Colorado Springs certainly has its share of high-priced real estate. That’s why it’s so important to keep an eye on the neighborhoods you’re interested in over time. If you watch the markets we’ve identified below, you’ll be better poised to move quickly and potentially close on your next investment home.
Methodology for Selecting Neighborhoods
We developed our list of the top five investment neighborhoods with homes for sale in Colorado Springs under $400,000 using four primary criteria: affordability, rental yield, market trends, and amenities and attractions.
Each of these neighborhoods has a median listing price below $400,000. They also all have a strong potential for rental income, as well as housing market stability, potential for property value appreciation, and proximity to transportation, schools, parks and shopping.
Top Investment Neighborhoods With Homes for Sale in Colorado Springs Under $400,000
Springs Ranch: Median listing price of $400,000
Springs Ranch, a neighborhood on Colorado Springs’ east side, has a median listing price of $400,000, with a median listing price per square foot of $239. Bordered to the east by North Powers Boulevard and sitting just north of Cimarron Hills, an unincorporated community in El Paso County, Springs Ranch offers proximity to the Colorado Springs Airport and Peterson Space Force Base, as well as a wide variety of restaurants and shopping. It’s in Falcon School District 49, the fastest-growing school district in the Pikes Peak region, which serves more than 26,000 students.
Springs Ranch is currently a buyer’s market, according to Realtor.com, with 200 homes for sale as of April 2025. Homes typically sell after 44 days on the market, less than Colorado Springs’ median of 48 days.
Pikes Peak Park: Median listing price of $348,000
Nestled on Colorado Springs’ southeast side, Pikes Peak Park has a median listing price of $348,000, with a median listing price per square foot of $218. This neighborhood’s boundaries are South Circle Drive, Hancock Expressway, South Academy Boulevard and East Fountain Boulevard. Pikes Peak Park offers proximity to Fort Carson, the third-largest employer in Colorado, and isn’t far from downtown Colorado Springs. It’s in Harrison School District 2, which serves 12,656 students.
Pikes Peak Park is currently a seller’s market, according to Realtor.com, with 90 homes for sale as of April 2025. Homes typically sell after 60 days on the market.
Southborough: Median listing price of $365,000
Southborough essentially makes up Colorado Springs’ far southeast side, sitting on the city’s southern border and resting up against Colorado Springs Airport to the east. The neighborhood’s median listing price is $365,000, with a median listing price per square foot of $210. In addition to being close to the airport, Southborough also offers proximity to Fort Carson. This neighborhood is also in Harrison School District 2.
Southborough is currently a balanced market, according to Realtor.com, with 54 homes for sale as of April 2025. Homes typically sell after 42 days on the market, less than Colorado Springs’ median of 48 days.
Palmer Park: Median listing price of $314,900
The Palmer Park neighborhood in central Colorado Springs contains a sprawling, 730.7-acre park by the same name. The city park boasts more than 25 miles of trails for horseback riding, mountain biking or hiking, as well as a dog park, several sports fields and more. The surrounding neighborhood has a median listing price of $314,900, with a median listing price per square foot of $194. The neighborhood, which also isn’t far from downtown Colorado Springs, is bordered to the north by Austin Bluffs Parkway, to the east by North Academy Boulevard, to the south by Constitution Avenue and to the west by North Union Boulevard. It’s in Colorado Springs School District 11.
Palmer Park is currently a seller’s market, according to Realtor.com, with 87 homes for sale as of April 2025. Homes typically sell after 52 days on the market.
Gateway Park: Median listing price of $362,500
Gateway Park also backs directly up to Colorado Springs Airport, bordered to the north by Airport Road, to the west by South Academy Boulevard and to the south by Astrozon Boulevard. This neighborhood on Colorado Springs’ east side has a median listing price of $362,500, with a median listing price per square foot of $217. Gateway Park is also in Harrison School District 2.
Gateway Park is currently a buyer’s market, according to Realtor.com, with 110 homes for sale as of April 2025. Homes typically sell after 50 days on the market.
Tips for Investing in Homes for Sale in Colorado Springs Under $400,000
If you’re in the market for an affordable investment property in Colorado Springs, consider finding a qualified property management company to handle tenant relationships and maintenance. The life of a landlord can be challenging, especially if you’re investing in older homes, which are generally more affordable but might require more maintenance or even a full-on renovation before you can rent them out.
As you hunt for your ideal investment home, you should also keep in mind that the property isn’t the whole picture — neighborhood class also plays a role in whether a given property is a good investment. Although it’s tempting to home in on the cheapest property available, it might not always be the best investment.
Looking for homes for sale in Colorado Springs under $400,000? Keep an eye on our exclusive, off-market deals list for some of the best, most reasonably priced investment opportunities.
