A new study has ranked Colorado Springs’ housing market as the 6th healthiest among other “large cities.”
The study — conducted by personal finance startup SmartAsset — measured 80 cities with a population of 200,000 or more across a range of factors, including stability, affordability, fluidity and risk of loss.
“A healthy housing market is both stable and affordable,” the study states. “Homeowners in a healthy market should be able to easily sell their homes, with a relatively low risk of losing money.”
Affordability accounted for 40 percent of the healthiest markets index, while each of the other three factors accounted for 20 percent, according to the study.
SmartAsset measured stability with two equally weighted indicators: the average number of years people own their homes and the percentage of homeowners with negative equity. The study measured risk using the percentage of homes that decreased in value, and determined housing market fluidity by looking at the average time a for-sale home in each area spent on the market.
Finally, the study calculated affordability by determining the monthly cost of owning a home as a percentage of household income in each city.
Colorado Springs homeowners spent an average of 11.1 years living in their home, with 8.1 percent of all homes having negative equity. For-sale homes spent an average of 48 days on the market, and only 2.7 percent of all homes saw a drop in value.
Homeowners in Colorado Springs spend 20.5 percent of their income on housing costs, according to the study.