If you’re already a resident or a homeowner in Colorado Springs, then you know how amazing it is to live in this area. You’re not the only one who feels that way: the Springs are becoming more and more popular with families, Millennials, students, and everyone who’s attracted to the quality of life you expect from this part of Colorado.
If you’re hoping to take advantage of the market and take the plunge into your first investment property, it’s important to keep up to date on the sorts of renters and opportunities you can expect. Here are 5 things to know when buying your first investment property in the Springs:
1. Expect Millennial Renters
Over the past few years, Colorado Springs has become an extremely popular location for Millennials, who are projected to overtake Boomers as the United State’s largest living adult population in 2019. In fact, studies have shown that from 2010 to 2015, Colorado Springs’ Millennial population increased by 14.7%, which is the highest rate in the country. Millennials are attracted not only to the natural beauty in this part of the country, but also to the growing tech industries and the general quality of life in the area.
It’s important for investors to understand the renting and buying habits of Millennials. Because this generation came of age around the Great Recession, they have a lower rate of homeownershipthan is average. This is good news for investors, since Millennials will be seeking homes and apartments to rent before choosing to buy property themselves.
2. Colorado Springs has a Great Reputation
Those of us who live here already know what makes this area special. But Colorado Springs has a great reputation nationally as a city to raise a family. It’s also very popular with military families. Let’s take a look at where Colorado Springs stands in the ranks:
- The U.S. News & World Report has ranked Colorado Springs the second best place to live in the United States. The report describes what makes this a wonderful place to live, noting that the economy is supported by the huge military presence in the area. The proximity of Fort Carson, Peterson Air Base, the U.S. Airforce Academy (among others) means that you can count military families as prospective renters of your property.
- The U.S. News & World Report recently did a fascinating survey which asked people around the country where they would live if they could. The results? Colorado Springs topped the list for survey respondents, coming out ahead of Honolulu, New York City, and Denver among 25 other amazing United States locations.
- According to Insurance Providers.com, Colorado Springs has been ranked as the second safest city in the United States. They used a variety of factors, like crime rate and natural disaster rate, to come to this conclusion. The safety factor makes this area extremely attractive to young families who may want to rent before they own.
For a complete list of all the ways Colorado Springs tops National Lists, check out its impressive Awards & Rankings page on the Colorado Springs website.
3. The Outdoors Never Gets Old
If you’re a long time resident of Briargate or Colorado Springs then you already know the truth to this: the natural beauty of Colorado never gets old. Many renters long to leave congested urban areas where they experience a disconnect from nature and the seasons. This area is a perfect antidote to modern living. By combining amazing job opportunities similar to those found in urban areas with tight-knit community and outdoor activities, many renters feel that Colorado Springs combines the best in both worlds.
And it really is the best: Garden of the Gods, for instance, is one of the most amazing National Landmarks in the country. As a prospective owner of an investment property, it’s important to keep in mind that markets may fluctuate—but the elements that make Colorado Springs attractive—the Rockies, the skiing, the fresh air—are here to stay.
4. Airbnb Is a Homeowner’s Ally
Colorado Springs has no shortage of long term renters, but short term rentals are also an incredible option to make the most of rooms or apartments. Using Airbnb as a resources can help bridge the gap between renters, supplement your passive income in any of your properties, or simply make up the majority of your rental income if that’s what your’re interested in.
According to Fortune, Airbnb’s profits are projected to grow to more than $3 billion by 2020, which is definitely a growth pattern that you can take advantage of as a homeowner. And you’ll always have prospective renters: Colorado Springs is a popular destination for vacationers interested in the pristine hiking conditions and unique geography that make the area so special. The one thing to keep in mind, because Colorado Springs is so incredibly popular with short term rentals, is that there are certain regulations in place for those in the area who want to rent via Airbnb.
5. Don’t be Afraid to Market to Students
When you’re still in the researching and investigative phase of purchasing an investment property, it’s important to know the demographics that will be interested in renting. We already know that Millennials and military families are scrambling to live in this area, but keep in mind the universities that are going to attract a huge percentage of student renters:
- The University of Colorado in Colorado Springs—This University attracts students in a variety of fields, including nursing and business. It’s been ranked as one of top 10 public universities in the west.
- Colorado College—Just minutes from downtown Colorado Springs, Colorado College is nestled into the foothills of the Rocky Mountains and offers students from diverse majors the ability to pursue their education in a beautiful setting.
- IntelliTec College—Providing hands-on technical trade education to students, IntelliTec College has a variety of practical programs: Medical Assistant, HVAC technician, and Automotive Technican among them.
Those are just a few of the many educational facilities in Colorado Springs. Serious students are an incredible asset for an investment property. You can rest assured that you will have a cycle of student renters each year in tune with the academic calendar—as long as you know in advance to market to students.
From Colorado Springs’ natural beauty to its special appeal to the Millennial Generation, it presents an incredible array of opportunities for homeowners who want to make their property work for them. If you’re interested in getting in touch with local experts about purchasing your first investment property, contact us at the Johnson Team.