Buying a home in Colorado Springs is tighter than it's been in years, but it's quietly getting better. Since 2022, local household incomes are up 13% while the median price is up less than 2%.
I built an index that tracks affordability every year since 1980, using local prices, mortgage rates, household income and inflation. Here's where today fits.
The short version
- 87: the index so far in 2026, the best year since 2021.
- 7.5%: the average 30-year rate since 1980. Today's 7.03% is below it.
- 2 for 2: Colorado Springs dropped below 100 in the 1980s and again in 2006 to 2007. Both times, affordability came back above 100.
How the index works
100 means the median household earns exactly enough to qualify for the median home, assuming 20% down, a 30-year fixed loan, and principal and interest at 25% of income. Above 100 is more affordable. Below 100 is less.
The index over time
| Year | Index |
|---|---|
| 1982 | 45 |
| 1990 | 93 |
| 1998 | 114 |
| 2006 | 96 |
| 2012 | 149 |
| 2016 | 141 |
| 2021 | 113 |
| 2023 | 77 |
| 2025 | 81 |
| 2026 so far | 87 |
| Today (7.03% rate) | 81 |
"Today" uses Freddie Mac's September 24, 2026 rate of 7.03%, the first reading above 7% since January 2025. That one rate move pulls the index from about 87 back to about 81, which is why rates are worth watching.
1982 vs. today
| 1982 | Today | |
|---|---|---|
| 30-year rate | 16.04% | 7.03% |
| Payment share of income | 55% | 31% |
| Price in years of income | 4.3 | 4.8 |
| Index | 45 | 81 |
Both years are below 100, but for different reasons. In 1982 the rate was the hurdle. Today it's the price, which is why tools that lower the starting cost matter most right now: assumable VA and FHA loans, seller-paid rate buydowns and down payment assistance.
What gets us back to 100
Using 2026 year-to-date numbers, any one of these would do it on its own:
- Rates fall to about 5.07%, with prices and incomes unchanged.
- The median price drops to about $403,200 (from $465,100), with rates and incomes unchanged.
- Median household income rises to about $111,500 (from about $96,600), with everything else unchanged.
More likely it will be a mix: modest rate relief plus a few more years of incomes growing faster than prices. Income has been doing its part since 2022.
Run your own scenario
The full index has a calculator built in. Plug in any price and rate, switch between conventional, FHA and VA, and see what a 2-1 or permanent buydown does to the payment and what it costs the seller.
Try the affordability calculator
Quick rule of thumb: every 0.25% in rate moves the payment on the median home about $60 a month.
Common questions
What does an affordability index of 100 mean?
It means the median household in Colorado Springs earns exactly enough to qualify for the median-priced home with 20% down and a 30-year fixed loan, with principal and interest at 25% of income. Above 100 is more affordable; below 100 is less.
Is Colorado Springs getting more or less affordable?
More affordable since 2023. Household incomes are up about 13% since 2022 while the median price is up less than 2%, which moved the index from 77 in 2023 to about 87 so far in 2026. A rate move to 7.03% in late September 2026 pulls it back to about 81.
Is today worse than the early 1980s?
No. In 1982 the index was 45 and the payment took about 55% of median income. Today the index is about 81 and the payment takes about 31%. The difference is that today's hurdle is price rather than rate.
What can buyers do right now?
Focus on tools that lower the starting cost: assumable VA and FHA loans with lower rates from prior years, seller-paid rate buydowns, and down payment assistance programs.
If you'd like me to run numbers for a specific listing or buyer, reach out at 719.602.9431 or ben.gosz@ctt.com.
Sources: NAR metro median single-family prices, Colorado Springs MSA; FHFA House Price Index; Freddie Mac PMMS; U.S. Census Bureau SAIPE and BEA income via FRED; BLS CPI. Prices before 2016 and income for 1980 to 1988 and 2025 to 2026 are estimates. Principal and interest only; taxes and insurance not included. For educational use only.