Why Colorado Springs Has 3x More Real Estate Agents Than the Rest of the Country
If you’ve walked through a neighborhood in Colorado Springs lately, you’ve likely seen the familiar "For Sale" signs dotting the lawns. But behind those signs is a fascinating, high-stakes story of a city with a unique real estate landscape. Colorado Springs currently holds a distinction that sets it apart from almost anywhere else in the country: it has a concentration of real estate agents three times higher than the national average.
In a recent deep-dive by The Colorado Sun, reporter Tamara Chuang explores what happens when a cooling housing market meets a massive surplus of professionals all vying for the same shrinking pool of sales.
Below, we break down the current state of the Colorado Springs market, why there are so many agents, and how the "survivors" in the industry are adapting to a more difficult economic climate.
The Numbers: A Market Under Pressure
To understand the tension in Colorado Springs, you have to look at the data. According to federal labor statistics, the "location quotient"—a measure of how concentrated an occupation is in a specific area compared to the national average—for real estate agents in Colorado Springs is a staggering 3.05.
This means for every one agent you’d expect to find in a typical American city, Colorado Springs has three. This ranks the city 11th in the nation for agent concentration, trailing only behind high-turnover hubs in Florida.
However, while the number of agents remains high, the number of actual sales has hit a rough patch. In April 2024, the local market posted a new low for the month with only 860 homes sold. To put that in perspective, that is about one-third fewer homes than were being sold just five years ago.
Key Statistics at a Glance:
Agent Concentration: 3x the national rate.
Sales Volume: 860 homes sold (April 2024), a significant drop from the 1,100–1,200 range seen pre-pandemic.
Member Decline: The Pikes Peak Association of Realtors (PPAR) reported a membership of 4,247—down about 4.2% from the previous year.
Why Colorado Springs? The "Military Factor" and the Pandemic Boom
Why does this specific city attract so many real estate professionals? Experts point to two primary drivers: population turnover and the "pandemic effect."
1. The Military Influence
Colorado Springs is home to several major military installations, and approximately 5.9% of the population is in the armed forces. This creates what Gordon Dean, PPAR's board chairman, calls "PCS season" (Permanent Change of Station). Every year, military families receive orders to move, creating a constant cycle of buying and selling that is largely immune to the typical reasons people stay put.
Data shows that 6.6% of the Colorado Springs metro population lived in a different state just one year ago—nearly double the rate of Denver. This high "churn" rate naturally creates a demand for agents, even if the current economy has slowed that momentum.
2. The Great Migration from Denver
During the pandemic, Colorado Springs became a haven for those priced out of the Denver market. With Denver’s median home prices often doubling those in the Springs, remote workers fled south to get more house for their money. This "housing frenzy" led to a gold rush of new agents entering the field in 2021, lured by the prospect of easy commissions and bidding wars.
The Reality of Being an Agent in 2024
Despite the high number of licensed professionals, the "80/20 rule" is in full effect. Industry veterans note that while there are thousands of agents, a huge portion of them are barely active.
According to Scott O’Connor, co-owner of RE/MAX Advantage in Colorado Springs, over 50% of agents do zero or one transaction per year. Many of these individuals maintain their licenses while working second jobs or relying on other sources of income. The financial gap is stark: National Association of Realtors (NAR) data shows that agents with less than two years of experience earn a median gross income of under $10,000, while those with 16+ years in the business average over $80,000.
The "Hope" Strategy
So, why do so many agents stay licensed if the market is this tight? Patrick Muldoon, president of Muldoon Associates, suggests that many "renewed on hope." At the start of 2024, there was widespread anticipation that the Federal Reserve would slash interest rates, which would have likely triggered a new buying boom. As those rate cuts were delayed, many agents found themselves "stuck"—having already paid their annual dues but facing a market where entry-level homes (around $430,000) are sitting on the market for weeks.
Success Secrets: Moving Back to Basics
For the agents who are succeeding, the strategy has shifted from "chasing leads" to "cultivating relationships."
Michelle Gutschick, an agent with RE/MAX Advantage, is a prime example of this new (or rather, classic) approach. A former junior high music teacher, Gutschick joined the industry just before the pandemic. While the "easy" business of 2021 has vanished, she continues to grow by treating real estate as a long-term community service rather than a series of one-off transactions.
Her tactics include:
Hyper-Personal Social Media: Instead of just posting listings, she uses social media to celebrate her clients' milestones, like kids getting into college.
Community Events: She hosts "Music Bingo" and painting parties to stay "top of mind" with her network.
Becoming a Resource: Successful agents today aren't just selling houses; they are the person you call when you need a painter, a plumber, or someone to blow out your sprinklers.
Looking Ahead: What Buyers and Sellers Need to Know
If you are a consumer in the Pikes Peak region, the current environment is a double-edged sword.
For Sellers: High-end homes ($700k+) are still moving relatively quickly if they are priced right, but the "entry-level" market is struggling because high interest rates have made those mortgages much less affordable for first-time buyers.
For Buyers: You have a massive selection of agents to choose from. This is a "buyer’s market" for professional services. You should look for an agent who has survived multiple market cycles and has a deep understanding of the local military and economic landscape.
Conclusion
The real estate market in Colorado Springs is currently in a state of "contraction and correction." The city remains a vibrant, high-turnover area thanks to its military presence, but the days of "easy money" for agents have passed. As interest rates remain high, we will likely see the number of agents continue to decline until the professional population better reflects the actual number of homes being sold.
For now, the agents who remain are those who understand that in a crowded room, the person who listens the best—and works the hardest for their community—is the one who gets heard.
Credits & References:
This blog post was adapted and summarized from original reporting by Tamara Chuang for The Colorado Sun
