Colorado Springs Q2 2026 Market Report

Key Takeaways

• Demand continues to outpace supply, with trailing 12-month absorption of 2,508 units exceeding 1,488 units delivered, supporting a 40-basis point quarterly occupancy gain to 90.5%.
• The delivery wave has subsided sharply, trailing 12-month completions fell 58% year over year—while the under-construction pipeline stands at 1,647 units (2.8% of inventory) with trailing 12-month starts of 1,500 units.
• Effective rents of $1,390 per unit reflect a 1.9% annual decline, but two consecutive quarters of positive sequential growth, including 0.9% in Q2, signal a nascent rent recovery as supply-side pressure eases.

Market Outlook

Colorado Springs is at an early-cycle inflection point. The delivery wave that pressured fundamentals through 2024 and early 2025 has largely crested…