As we hit March 2026, Colorado Springs continues to expand, driven by in-migration, a strong economy in defense, health care, and tech, and steady demand for housing and commercial spaces. While the residential market remains somewhat flat overall, key sectors like retail and multifamily are showing resilience amid a slowdown in new construction. Here’s a snapshot of the current trends.

Retail Sector Thriving Amid Low Vacancies

Retail in Colorado Springs is a bright spot, with vacancy rates hovering below 5% and strong consumer demand fueling expansions. About 228,000 square feet of new retail space became available last year, but absorption kept pace, maintaining tight availability without overbuilding. Neighborhood centers and restaurants are particularly hot, benefiting from population growth and economic stability. Expect continued strength in 2026, with new mixed-use developments blending retail with residential and office spaces.

Apartments: Resetting After a Building Boom

The multifamily market is normalizing after a surge in supply. Rents have dropped about 7% year-over-year and 12.5% since 2022 peaks, with vacancies rising but occupancy still around 94%. Over the past decade, more than 16,400 new apartments were added, but construction slowed dramatically in 2025, with fewer than 1,000 units expected in 2026. Recent projects include Thompson Thrift’s 300-unit Maverick community opening in 2027 and a 336-unit complex on Venetucci Boulevard. Analysts predict a rebound by mid-2026 as demand outpaces supply, leading to modest rent growth.

New Homes: More Inventory, Slower Sales

Single-family home construction dipped slightly in 2025, with 2,811 permits issued—a 1% decrease from the prior year. Homes are lingering longer on the market, averaging 72 days in January 2026, up from last year, with prices falling and more listings expected. This creates opportunities for buyers, especially in growing areas. Downtown plans include a 28-story residential high-rise and more affordable housing, signaling urban infill growth. Overall, population influx keeps demand strong, though the market favors buyers more than in recent years.

Looking Ahead

Colorado Springs’ growth in 2026 balances opportunity and adjustment. Retail stays robust, apartments stabilize, and new homes offer better affordability. This means a vibrant, evolving city—stay tuned for more developments! If you’re eyeing investments, we can provide tailored advice.