The City of Colorado Springs has released a new Regional Housing Needs Assessment, presenting the most detailed analysis of local housing conditions in over ten years. The assessment, presented to the City Council, shows that as of 2023, there is a shortage of 27,712 housing units in the area. Projections indicate that by 2035, an additional 60,034 homes will be needed to meet demand, which would require doubling the current pace of home construction.
The report highlights several challenges for the region’s housing market. Rising home values and limited rental options have created a mismatch between available housing and the needs of different groups, including single-person households, seniors, young professionals, and workers with low to moderate incomes. More than half of renters and nearly one-third of homeowners are spending more than 30% of their income on housing.
“This assessment gives us a clear and honest picture of where we stand, and where we need to go,” said Aimee Cox, Chief Housing and Homelessness Response Officer. “Housing demand has outpaced housing supply, and this shortage affects residents across all income levels, limiting housing choice for everyone especially families, seniors, and low wage workers. Fortunately, these numbers also point us toward potential solutions. Our next step is to create a Housing Action Plan to support a balanced housing market and ensure that people who live, work, or choose to retire in Colorado Springs can find a home that meets their needs.”
Colorado Springs continues to grow as a center for defense, aerospace, education, and technology industries. This growth is expected to keep demand strong for various types of homes such as entry-level properties, workforce rentals, and accessible units.
To provide public access to data from the assessment, the city has launched two interactive online dashboards. These tools allow residents to view neighborhood-level trends in housing needs and affordability throughout El Paso County. The first dashboard presents key data by municipality—including diversity in housing stock and cost-burdened households—while the second offers census tract-level information on occupancy type and household income.
According to the assessment’s findings:
– El Paso County’s population is projected to reach nearly one million by 2050—a 35% increase from 2023.
– Since 2010 Colorado Springs has added more than 30,000 households.
– Average rent reached $1,784 per month in March 2025; only about one-third of renters earn enough for this level to be considered affordable.
– The average home value climbed to $457,000; only about 30% of local households earn enough to purchase at this price point.
– Real home values increased almost four times faster than incomes between 2018–2023.
– Nearly four out of five senior households are living in homes larger than they need; over 23,000 accessible units are required for those with mobility needs.
– Military personnel face particular difficulties as Basic Allowance for Housing often does not cover typical family-sized rental or ownership costs.
The full assessment was funded by multiple sources including the City itself as well as grants from El Paso County Community Development Block Grant program and Colorado Infrastructure and Strong Communities Grant Program. It also supports compliance with state requirements under Senate Bill 24-174.
Recommendations based on this study will inform a forthcoming Housing Action Plan anticipated in 2026. This plan will outline strategies such as zoning changes and funding tools aimed at creating a more balanced regional housing market.
Dashboards and complete details from the study are available at ColoradoSprings.gov/HousingNeedsAssessment.
