If you move to Colorado Springs expecting sunshine, scenic views, and a relaxed mountain-town life, you’ll get some of that — but the other side often gets left out of the marketing. By 2026, the cost pressures, infrastructure tension, and shifting civic budgets are going to test residents in ways few anticipate.
First off: cost of living is squeezing middle-class margins. Housing prices have surged over the past several years, and while the Pikes Peak region is (by some metrics) still cheaper than Metro Denver, the gap is narrowing. Colorado Public Radio Utility bills, building materials, land costs, and labor continue to rise, and they feed directly into every new home’s price. For folks who rent, wages in many service jobs are failing to keep up. Meanwhile, those on fixed incomes or nearing retirement are feeling the tilt as property taxes, insurance, and maintenance climb.
Second: local government is under severe strain. Colorado Springs is forecasting a $31 million budget shortfall in 2026, triggering layoffs, furloughs, and cuts to services. KOAA News 5+2Colorado Public Radio+2 City employees are bracing for five unpaid days off — and those making above $72,000 will lose two additional days. City of Colorado Springs Some civic projects and community centers may be shuttered, and nonessential city workforce reductions are actively being discussed. https://www.kktv.com+1 That means fewer capital improvements, maintenance backlogs, and stretched public resources exactly when population growth and infrastructure demand remain high.
Add to that a wage disparity problem. Despite being relatively prosperous in the regional context, local wages — especially in retail, hospitality, or entry-level public service — often fall behind what’s needed to sustain a decent living in Colorado Springs. KRDO That results in many people commuting from more affordable areas, or simply being shut out of homeownership entirely.
And yes — growth is cooling. While El Paso County’s population projections remain steady, growth in Colorado Springs itself is slowing, down nearly 50% from the pattern seen during the boom years. KRDO That’s a signal: the influx of buyers and newcomers fueling demand may taper, which could exacerbate distress in the housing market if supply continues to push upward.
Still — all is not doom. Colorado Springs retains strong regional fundamentals: an educated workforce, steady job creation in defense, aerospace, tech, and a location advantage that draws people looking for a bit more breathing space than the Denver metro offers. Colorado Public Radio+2Colorado Springs Gazette+2 But going forward, the winners in this environment will be buyers, renters, and community leaders who plan strategically — clearing buffers, demanding smarter infrastructure, pushing for more affordable supply, and holding local government accountable.
Make sure to reach out to us here at Colorado’s Finest Agency if you are thinking about making the move to Colorado Springs or Monument. We help people make the move daily! 719 367-6880
