REAL ESTATE NEWS

It's a tale of two markets for multifamily within Colorado Springs, Colorado. On one hand, apartments are filling up, but on the other, rents are continuing to drop as supply outpaces demand, according to CBRE's 2025 market report.

Starting with the good trends, occupancy in Colorado Springs increased by 40 basis points year-over-year to 94 percent. That amount was also up by 20 basis points from 2023. The vacancy rate is the lowest in the West Colorado Springs submarket, at 6.3 percent, while the other three submarkets tracked all edged above the average seven percent vacancy rate.

Also, supply volume continues to drop, with just 1,383 deliveries in 2025 compared to 4,242 in the year prior.

"New completions continue to fall since their peak in 2023 when 4,723 units delivered," CBRE said.

While net absorption outpaced supply at 1,540 units — demand is slowing. The amount is down from the 3,776 posted in the previous year and nearly 60 percent below 2023 levels. But overall, CBRE refers to the category as "healthy."

Then we get to the more troubling trends. Most notably, rents have plunged by 7.5 percent year-over-year to $1,410 and the drop expands to 10 percent when compared with 2023 levels.

Investor interest is also waning, with sales volume plummeting by 31.5 percent in 2025 to $248 million. The largest multifamily trade in Colorado Springs involved 71-unit Mountain Pointe, trading for $6.15 million. Rounding out the top three were properties, Southgate Commons and Brookside Apartments, selling for $4.81 million and $4.03 million, respectively.

Source: GlobeSt/ALM