2026 looks favorable for strategic buyers | 2026 Outlook | Colorado Springs Real Estate

Colorado Springs Real Estate Outlook 2026: Job Growth in Aerospace and Defense Keeps Demand Resilient—Why Now Might Be the Time to Act

Good morning! Heading into 2026, Colorado Springs continues to benefit from its strong ties to the aerospace and defense sectors, which are driving high-wage job creation and supporting steady housing demand. While many buyers hold out for lower mortgage rates or more inventory, the ongoing influx of well-paid professionals is likely to maintain pressure on the market. Waiting too long could mean facing increased competition as these new residents settle in. Here's an updated view based on official state announcements, economic forecasts, and industry reports.

The Driving Force: High-Paying Jobs in Aerospace and DefenseColorado Springs' economy remains bolstered by its role as a key hub for aerospace, defense, cybersecurity, and related fields. Recent company expansions are bringing significant job growth:

• ITS, LLC: This veteran-owned firm, specializing in IT engineering, cybersecurity, and technology solutions for aerospace and defense, is expanding its Colorado Springs operations with a $7 million+ investment, creating 500 new jobs at an average annual wage of $130,482.
• Boecore: An aerospace and defense engineering company focused on software solutions, systems engineering, and cybersecurity, expanded in recent years, adding over 600 jobs in high-demand areas like software and systems engineering.
• Ongoing Sector Strength: Additional expansions from companies like Bluestaq, The Aerospace Corporation, and others have contributed hundreds more roles, reinforcing the region's ecosystem supported by installations like Peterson Space Force Base and Schriever Space Force Base.

These positions—often requiring security clearances and offering salaries well above the regional average—attract skilled workers and families, sustaining housing needs even in a higher-rate environment. Statewide, Colorado anticipates modest overall job growth of 0.6% in 2026 (about 17,500 jobs), but the Pikes Peak region's focus on defense and tech provides relative stability.

Mortgage Rates: Adapting to the Mid-6% NormForecasts indicate no quick return to low rates. Fannie Mae projects 30-year fixed rates ending 2026 around 5.9-6.0%, while the Mortgage Bankers Association sees them holding in the 6.3-6.4% range. This gradual easing (if it materializes) could draw more buyers into the market without sparking dramatic affordability improvements.Key Takeaway: Current rates in the low-to-mid 6s, combined with improved inventory, offer negotiating leverage today. A further dip could activate sidelined demand, tightening competition.

Inventory and Market Balance: Room to Breathe, But Demand PersistsSupply has increased, with homes spending more time on the market (often 40-50+ days). The "rate lock-in" effect continues to limit listings from existing homeowners. However, job-driven population growth—the metro area is projected to approach 716,000-720,000 residents in the coming years—will support ongoing demand. Expect modest price gains of 1-3% in 2026, with resilience in areas tied to employment centers.

The Outlook: Proactive Moves Win in 2026The steady arrival of high-earning jobs in aerospace and defense underscores Colorado Springs' economic resilience. Delaying purchases in hopes of ideal conditions risks higher competition and prices as new workers arrive, potentially offsetting rate benefits.2026 looks favorable for strategic buyers: Better selection now, backed by a stable job market and gradual economic growth.For more details, here are supporting sources:

• ITS, LLC Expansion Announcement (Colorado Governor's Office): https://governorsoffice.colorado.gov/governor/news/its-expands-colorado-springs-creating-500-new-aerospace-and-defense-jobs
• ITS, LLC Expansion Details (OEDIT): https://oedit.colorado.gov/press-release/its-llc-expands-in-colorado-springs-creating-500-new-aerospace-and-defense-jobs
• Boecore Expansion (OEDIT Archive): https://oedit.colorado.gov/press-release/colorado-aerospace-industry-continues-to-grow-polis-primavera-administration-secures
• Fannie Mae Mortgage Rate Forecast: https://www.fanniemae.com/newsroom/fannie-mae-news/mortgage-rates-expected-move-below-6-percent-end-2026
• Colorado 2026 Economic Outlook (CU Boulder Leeds School): https://www.colorado.edu/today/2025/12/08/colorados-economic-forecast-2026-steady-growth-despite-headwinds

How do you see these job trends impacting your plans? Let's discuss!