Colorado Springs or Erie, Colorado?

Question

This is a question for my primary home. We are considering moving to Colorado. The two areas that are of interest to us are Colorado Springs (specifically Wolf Ranch or Banning Lewis) and Erie (specifically Colliers Hill). I'd love to hear from any Colorado real estate agents on which area they recommend from a pure appreciation standpoint. We'd likely be in the home for 10-15 years. Thank you!

Jenny Bayless · Answer

@Adam Williams I can only speak to Colorado Springs, but I think the areas you mentioned should reasonably expect to continue to see very nice growth over the next several years.

As @Chris Lopez mentioned, we are helping a few clients buy around Wolf Ranch for house hacking- specifically NOMADing- (most of the newer neighborhoods around the Powers Corridor prohibit the rent by the room strategy in their covenants, but that's a different topic) as there is a lot going for that area and should hopefully continue to be robust in the years to come. Not to mention, while they are living in the homes in this area, it will serve their personal needs, and then they will turn into rental properties once they move out as there is a lot of demand for that area. There is a lot of development and industry around the Powers Corridor, not to mention it also is close to Peterson AFB and the airport.

Hope this helps some!

Janice S. · Answer

Hi Adam,

I live in Broomfield, about 10-15 min from Erie. There has been massive growth here in the suburbs north of Denver. My husband and I moved here 14 years ago to a new subdivision in Broomfield, we sold our home last year for 60% more than we bought it for. Huge consideration was given to accessibility to Denver and Boulder. Job growth (as well as lifestyle) has been a driving factor in the migration in to the Denver market.

The pandemic has spurred migration towards suburbs outside of Denver.

Erie has grown rapidly in the last 2 years. Accessibility to I-25 will also lend to appreciation factor. I believe Erie’s master plan includes a new exit/entrance off of I-25 from Erie Parkway. This will position Erie for good accessibility to the highway as well as another gateway into Boulder. Denver, Boulder, Co Springs are different sub markets within CO. The Springs is far enough south that people do not tend to come up towards Denver.

That said, pre-pandemic, commuting times was a factor in these sub markets. The demand for housing in the suburbs just outside of Denver/Boulder have been strong in the last decade. The pandemic has been driving even bigger demand for homes with more square footage and yard.

I can’t speak to Co Springs, although we looked there before we settled on the north Denver suburbs. At the time the jobs market didn’t seem as strong .

Maria Bakaj · Answer

@Adam Williams Erie and Colorado Springs have very different personalities.  I would recommend looking into that some more to make sure the location you choose fits your needs and desires for your primary residence.

I personally tend to stay away from areas where there's a lot of land for new developments.  I'd ask yourself the question, "In 10 years why should someone buy my house if there's a brand new one with the latest styling and fixtures down the road for the same price or slightly more."

From the ones you have chosen, I would pick the community that is closest to a city or where everyone is working.

Since it seems like you are only looking at new communities, for the Denver/Boulder Metro area I would look into West Arvada.  There's new builds out there and it's that much closer to Denver, Broomfield, and Boulder where the jobs are.  In comparison, I feel the appreciation is better there but there's no certainty in appreciation.

Matt M. · Answer

I'm on the North side, so I'm biased. I like it better up here, but COS is growing on me. You can't go wrong with either area. I'd stay out of Weld county due to the fracking wells near the neighborhoods.

Greg Weik · Answer

Some great insight in this thread.  From a pure appreciation standpoint, this comment is golden:

@Maria Bakaj "I personally tend to stay away from areas where there's a lot of land for new developments.  I'd ask yourself the question, "In 10 years why should someone buy my house if there's a brand new one with the latest styling and fixtures down the road for the same price or slightly more."

Whether you are buying rental properties (my specialty) or looking for your primary residence, if appreciation is your goal, you want to buy in an established area where there is little-to-no room for new construction.  This is where appreciation consistently is strong.

Maria Bakaj · Answer

@Greg Weik Thanks for the shoutout!

Adam Williams · Answer

Thank you everyone for all of the responses! This has been so helpful.

Samantha Friedman · Answer

@Adam Williams

My husband and I just bought new construction in Wolf Ranch. Classic Homes anticipates their new builds to be going up for the next 5-10 years. COS has a massive military population (USAF, Army, and Canadian military). Because of the military and mass exodus from California, I would anticipate solid appreciation, but like others have said, you can’t guarantee it.

My husband and I are both active duty Air Force, so we’re banking on renting out the home in 3 years, and possibly moving back when we retire. The appreciation up to now has been insane, so hoping it stays on this track!

Chris Lopez · Answer

@Adam Williams I've spent time in Tracy, CA. Either of those areas in CO will treat you way better! :)Seriously, it's too hard to tell which will give the best appreciation. No one can give you a definitive answer. @Jenny Bayless is helping a client buy a house hack in or near Wolf Ranch. I can't recall details, other than she mentioned it.Buy in either area and ride the growth of the Front Range.

Colorado Springs or Erie, Colorado?

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