El Paso County Landlords Are Getting Squeezed From Both Sides in 2026
Published by Cash Flow Deals · Last updated 2026-08-04
Colorado Springs multifamily rent growth dropped 7% year over year, vacancy hit 7%, and landlord concessions jumped 107.5%, Colorado Politics reported in February 2026. Meanwhile El Paso County's single-family median price sat just shy of $470,000, down from a $500,000 June peak, with 30-year mortgage rates averaging 6.1%. Landlords holding rentals are squeezed from both sides.
| Factor | Traditional Listing | Cash Flow Deals |
|---|---|---|
| Timing in a stalled sale market | Listings sit while buyers wait out 6.1% mortgage rates | Net price locked upfront, no waiting on buyer financing to clear |
| Price certainty | Sellers compete in a market where prices have stalled near $470,000 | Net price locked before repairs are even scoped |
| Handling a worn or tenant-occupied rental | Seller typically repairs and stages before listing | Property can move without a repair-first requirement |
What Colorado Politics Found
Colorado Politics published a four-part look at Colorado Springs real estate in February 2026, and the rental side was rough. Multifamily rent growth fell 7% year over year, and it's now down 14% from its Q3 2022 peak, according to CBRE Denver's Willy Holliday. Vacancy sat at 7%. Landlord concessions, the discounts and move-in perks owners offer to fill units, rose 107.5% year over year. Absorption slid too: about 3,245 units were occupied by the end of 2025, down from roughly 4,000 at the start of that year. On the ownership side, the same report put El Paso County's single-family median price just shy of $470,000 in January 2026, down from a $500,000 peak the previous June. Keller Williams Premier agent Tiffany Lachnidt described a stalemate: rates jumped 2.5 to 3 percentage points and prices never came down to match, so the market went stagnant.
Why the Squeeze Matters to a Local Landlord
A landlord holding a rental property in El Paso County is caught in a pincer. Rental income is under pressure: with vacancy at 7% and concessions up 107.5%, filling a unit costs more and pays less than it did a year ago. At the same time, the for-sale market that would let a landlord exit isn't moving fast either. The 30-year fixed mortgage rate averaged 6.1% as of January 29, 2026, which keeps buyers on the sidelines and holds prices flat. A landlord who wants out of a softening rental doesn't have an easy escape hatch through a traditional sale right now, because the buyer pool on that side has also thinned.
The Broader Economic Backdrop
Colorado Politics also flagged a statewide migration shift: more people are now moving out of Colorado than are moving in, per Common Sense Institute economist DJ Summers, and rising cost of living is eating into household spending power across the state. That backdrop matters for a county like El Paso, where home values lean on steady population growth to hold up. On the commercial side, retail vacancy sat at 4.9% and office vacancy at 11.6%, which NAI Highland's Michael Suggs said reflects a market that's still doing fine, just slower than it was three to five years ago, with area agencies still closing transactions. None of these numbers point to a market about to snap back fast. The report's framing for 2026 was blunt: more of the same, driven by high rates, construction costs, and insurance expenses.
What a Landlord in This Position Can Do
A landlord watching rental margins shrink has options besides riding it out or listing into a stalled market. Some hold and wait for rents to recover. Some list traditionally, knowing a sale could take longer given the current buyer-seller stalemate and carry two or three more months of mortgage, insurance, and vacancy costs while it sits. A seller facing this squeeze can also request a locked net-price offer from a real estate investment company like Cash Flow Deals before repairs are scoped, which means the number doesn't move once an inspector finds something wrong with the property.
Common questions
How much did Colorado Springs multifamily rents fall in 2026?
Rent growth dropped 7% year over year and sits 14% below its Q3 2022 peak, according to CBRE Denver data reported by Colorado Politics in February 2026.
What's the median single-family home price in El Paso County right now?
Just shy of $470,000 in January 2026, down from a $500,000 peak in June, per the same Colorado Politics report.
What mortgage rate is freezing buyers and sellers apart?
The 30-year fixed averaged 6.1% as of January 29, 2026, which Keller Williams Premier agent Tiffany Lachnidt pointed to as the reason prices and demand have stalled together.
Are landlord concessions really up over 100% in Colorado Springs?
Yes. CBRE Denver reported concessions, move-in discounts and perks landlords offer to fill vacant units, rose 107.5% year over year as of early 2026.
Does a soft rental market mean it's a bad time to sell a rental property?
It means the traditional sale path is also slower right now, since the same high mortgage rates cooling the rental market are keeping buyers on the sidelines. A locked net-price offer is one way to get certainty without waiting on that buyer pool to loosen up.
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What this means for your options
When more landlords list rental property at the same time, buyer attention splits across more listings. Properties that don't compete on the open market close faster.
Wait and see
Keep the property as-is and hope conditions improve. The mortgage, insurance, and upkeep keep costing money while you wait, with no set date for things to turn around.
List with a traditional agent
Standard MLS listing, typically 5-6% in commission, and a financed buyer whose deal depends on appraisal, inspection, and lender approval — any of which can fall through after weeks on market.
Sell to Cash Flow Deals
No repairs, no showings, no financing contingency on your side — our novation structure connects you with a bank-financed buyer at a price locked at signing. A no-obligation offer, usually within one business day.
See your no-obligation cash offer before you decide anything.