Colorado Springs is no longer the hot spot for people looking to move to Colorado. In fact, many people are moving out of the city due to the high cost of living and lack of jobs. The city has been struggling for a few years, and it doesn’t seem to be getting any better.
The residential real estate market in Colorado Springs, CO, is hotter than ever, and many people are moving out of the city to find cheaper housing options.
Is Colorado’s Population Declining in 2022?
The answer is yes. Colorado’s population will be declining in 2022. Rocky Movers’ statistics show a higher outbound than inbound volume in Denver, Colorado Springs, and Fort Collins from 2020 to 2022.
So, What’s Causing this in the Centennial State?
Colorado’s Cost of Living
Colorado’s cost of living is increasing at a faster rate than wages. The Colorado Springs Gazette states, “the region’s housing costs have increased more than twice as fast as incomes since 2010.”
Colorado Springs Residents are Cashing Out
Home values in the front range are at an all-time high, and many people are cashing out and moving to other states. The most popular states that have seen a population growth of Colorado residents are:
- New Jersey
- Up State New York
The Most Popular States in the South People are Moving to in 2022
The south has always been a popular destination for people leaving Colorado, but we have seen many people moving to North and South Carolina this year.
Lots of People Leaving Colorado Springs for North & South Carolina
The estimated number of families we have moved from the Denver Metro area to the Carolinas is 372 in the last seven months. This is a 39% increase from 2019.
After collecting some data from Zillow and the Census Bureau, we have seen a significant price increase in the residential housing market.
The Perfect Example of the Real Estate Market Bubble in Colorado Springs, CO
There’s no question that housing prices increased in the entire country and most parts of the world. Residents that own a home in Colorado Springs since 2010 have increased in home equity, and many are now cashing out.
The Sign that it’s Time to Sell
The following example shows a typical Colorado Springs house purchased in 2010 for $221,000 and is on the market for no less than $575,000!
Another example is a house purchased in 2019 for $325,000 and listed only three years after for $469,000, but that’s not the crazy part of this story!
How California, New York, and Chicago are Making it a Seller’s Advantage in Colorado
When so many people are moving to Colorado from California, New York, or Chicago, they sell their houses for top dollar and relocate to cities like Denver, Fort Collins, and Colorado Springs with cash offers.
The worst part is that most people in popular states like Colorado expect and actually receive offers above asking price because of the lack of inventory.
Homes in the Rocky Mountains have been selling like hotcakes, and there’s no end in sight.
What New Residents to Colorado Don’t Realize
Between the higher cost of living,28% above the national average, inclining inflation crisis of 9.2% to high-interest rates of 5.3%-6.7%, it might make life challenging for new residents in the state of Colorado in a few years.
This is a clear sign that Colorado and the entire country are heading into a recession in the next two years.
Let’s Go Over People Leaving Colorado Springs to the Following Popular Destinations
Moving to Florida
We know that Florida has excellent weather for most of the year, no state income tax, and many people are downsizing or retiring there.
The retirees sell their houses for top dollar in Colorado Springs and Denver and can buy a brand-new home or condo without a mortgage.
Moving from Colorado Springs, CO, to Orlando Florida
Let’s say your house in Colorado Springs can sell for $525,000, and you still owe $200,000 on the mortgage.
You can sell your home, pay off the mortgage, and have $325,000 to buy a home in Orlando for around that price. You’re mortgage free and can afford to live on a lower income.
Moving to Texas
So far, most people leaving Colorado Springs and Denver in 2022 are moving to Texas. The lack of state income tax, mild winter climate, and cheaper cost of living are a few reasons why Colorado residents are relocating there.
Net Migration Data from CA to TX
Net migration report shows that 1 in 4 people moving to Texas are from California. With so many people moving from Colorado and California to Texas, it has caused housing prices to increase in the last few years.
What’s Going on in Texas?
Austin and North Dallas homes sell between 10%-25% above the asking price with cash offers in less than 72 hours. We’ve seen a house in Plano, TX, listed by the owner for $595,000, sell for $677,000 over the weekend, gaining 13.8% in equity.
Moving to Arizona
Arizona is another state with no state income tax and has become increasingly popular over the past few years. The cost of living and listed home prices are much lower in Arizona compared to California and Colorado.
It’s Challenging to Buy a Home in Arizona Now
Visitors coming to Arizona for winter are now buying second homes and investment properties. It’s not uncommon for Californians to buy a house in Scottsdale for $665,000 and spend only $4,500 yearly on property taxes.
People moving to the Pheonix area don’t understand that the same house was sold in 2012 for $247,000, an increase of 168.7% and that, my friends, is called inflation!
Moving To Washington State
Washington state is a success story when it comes to the real estate market, jobs, and access to amenities. The state has been able to contain the housing crisis better than most and continues to create jobs in the technology and engineering field.
Seattle Has a Better Job Market than Colorado Springs
People relocating from Colorado Springs, Rocky Mountains, or Denver to Washington are familiar with the local winter climate and are looking for a change of pace. Microsoft, Amazon, Starbucks, and Boeing provide many high-paying jobs in Seattle and the surrounding areas. The average salary in Seattle is $105,000 per year, but the cost of living is 25% higher than in Denver, CO.
Rent Price Comparison for a One-Bedroom Apartment
Here is what we have gathered from RentCafe’s website for you:
- Colorado Springs – An 850 Sq. Ft. one-bedroom averages $1,470 a month.
- Denver, CO – An 842 Sq. Ft. one-bedroom averages $1,879 a month.
- Seattle, WA – An 690 Sq. Ft. one-bedroom averages $2,190 a month.
Conclusion: Unless you make at least $105,000 per year, you might want to rethink your move to Seattle, Washington. Otherwise, you will be losing money each month.
Moving to Idaho
People moving from California drove up Idaho’s home prices in previous years. We are seeing an influx of people relocate from Oregon, Washington, and Colorado. The cost of living and house prices are much lower in Idaho compared to neighboring states.
The Last Pandemic Taught Us a Lesson or Two
With the pandemic, many people have been working remotely and no longer need to live close to their offices. This has caused a notable shift in how people view living arrangements and has made Idaho a more attractive option for relocation.
Homes in Idaho are Cheaper
The median home price in Idaho, as of July 2022, is $569,000, much lower than in the city of Denver at $660,000 and Fort Collins at $600,000, but higher than in Colorado Springs at $465,000. The rest of the state has even lower prices, with some areas averaging $350,000 or less.
Moving to Kansas
In 2012, many people living in the Sunflower State and other states were moving to Colorado Springs and Denver because of the job opportunities that the legalization of marijuana brought about. You had access to higher-paying positions while living in a city where everything was still cheap.
In 2019, net migration from Colorado to Kansas was at an all-time high, with over 7,200 people moving from the Centennial State. About a third of these people were moving from the Colorado Springs area.
Moving From Colorado to Kansas By the Number
- Kansas City – 112 moves
- Overland Park – 174 moves
- Topeka – 95 moves
- Wichita – 198 moves
- Olathe – 103 moves
- Lawrence – 79 moves
- Shawnee – 61 moves
What You Might Not Know About Colorado Springs
Colorado Springs is located in the southern part of the state and is home to a population of just over 685,000 people. The beautiful city of Colorado Springs is situated at the base of one of the most famous mountain ranges in the country, the Rocky Mountains. It is also home to several other significant geographical features.
Colorado Springs is possibly best known for being the home of the United States Air Force Academy and being the site of several important military installations. The city is also home to some large corporations, including Lockheed Martin, Northrop Grumman, and Raytheon. Colorado Springs is a thriving community with a lot to offer.
The Bottom Line
As we can see, people are moving from high-cost to low-cost states, but they don’t realize that they’re still in for a big surprise. If you’re considering moving to Denver, Colorado Springs, or Fort Collins, be prepared for overpriced homes and offers above the listed price.
On the other hand, if you’re thinking about moving from Colorado Springs to another state, do your research first! Make sure you know what the cost of living, housing prices, and property taxes are like in your new state. Otherwise, you might need to look for an additional source of income.
Rocky Movers – Long-Distance Movers Serving Colorado Springs
Need help with your out-of-state move? Rocky Movers is here to help! We are a long-distance moving company in Denver, CO, specializing in cross-country moves from Colorado Springs, Denver, Fort Collins, and the entire state of Colorado.
Get a Free Moving Quote from Your Local Movers
We at Rocky Movers offer various moving services to make your long-distance move more manageable, including packing, loading, and transportation. We also provide one month of free storage if you need to store your belongings and haven’t found the perfect home. Get a free moving quote and let Rocky Movers help you with your long-distance move!