Economy
The Colorado Springs MSA has experienced fluctuations in the areas of economic production, employment, income and cost of living impacting their overall economic performance.
Report Summary:
Economy
Colorado Springs continues to draw people evidenced by the increase in population of the Metropolitan Statistical Area (MSA) by more than a third over the past two decades.
Key Indicators
There are many factors to consider when assessing the vitality of a local economy. The quantitative measurements included in this section affect, and are affected by, many indicators throughout the report. The Colorado Springs Metropolitan Statistical Area (MSA) has experienced fluctuations in the areas of economic production, employment, income, and cost of living impacting their overall economic performance.
Click on an indicator to learn more about it! Be sure to use the infographics and additional resources for the full experience.
Economic Productivity
What Is This?
Gross Metropolitan Product (GMP) is a measure of the goods and services produced by labor and property in a community. It is the local version of Gross Domestic Product (GDP), which measures the economic output of a country. Per capita GMP is a measure of individual economic productivity for a community. It is calculated by dividing the GMP by the population of the community.
2 Bureau of Economic Analysis
Potential Actions
A robust assessment of the local economy would determine how well the current tourism/military/service industry economic base can support, sustain, and improve quality of life. It is likely that significant effort will be required to grow and attract high productivity jobs to achieve high levels of economic output without the need to build significantly more infrastructure.
Employer Size, Growth & GDP
What Is This?
Employer size looks at the average size of an employer in terms of employee headcount. Employment growth reflects the total number of new jobs created in a given period of time.
4 U.S. Census Bureau
Potential Actions
Colorado Springs’ growth in small-to-mid-sized employers has outpaced the national average. However, growth in large employers has only matched the national average, while other peer communities have seen greater growth. (Note: This data does not include federal government employers). Colorado Springs has done well in attracting new employers over the past 20 years and has maintained an even mix of small to large employers. However, Colorado Springs has very few nationally known large employers with significant, high paying jobs. This likely results in Colorado Springs wages being suppressed compared to that of peer communities. Attracting larger companies would be likely to drive up employee wages to keep pace with increased costs of living.
Employment & Population
What Is This?
Workforce participation is the proportion of the population that is working. It provides an alternative to traditional unemployment statistics that exclude people who are neither employed nor looking for a job.
6 Bureau of Economic Analysis, U.S. Census Bureau
The worker population shown above includes sole-proprietor work (such as those engaged part-time in the “gig” economy). Were these workers not counted, each community would drop further below the diagonal, with population growing faster than wage and salary employment.
Potential Actions
The Colorado Springs MSA would benefit from continued actions to support growth in job opportunities to maximize employment, economic output, and incomes. This would support a secure and enjoyable lifestyle for all residents and improve tax collections to fund infrastructure and regional amenities to enhance quality of life.
Employment by Industry
What Is This?
Employment by industry, reported by the U.S. Bureau of Labor Statistics, is calculated by using data collected by employers in all industry sectors in metropolitan and nonmetropolitan areas in every state and the District of Columbia.
How are we doing? Over the past decade, we have seen substantial job increases as well as job reductions in the following sectors:
7 Bureau of Labor Statistics
Potential Actions
The data reflects that, from 2014 to 2023, job growth in Colorado Springs MSA (2.5% average per year) has outpaced that of Fort Collins (2.2%) and Boulder (1.7%). Continuing to diversify the employment base in the Colorado Springs MSA should be a priority, with an increased focus on the attraction and retention of technology and manufacturing industries.
Income
What Is This?
The section on Productivity considered the total value of goods and services produced by a community (gross product). This section considers the income that local people derive from that production. Per capita income is calculated by taking the total income derived in a community and dividing it by the total number of people in the community. This includes all forms of income salaries, wages, social security, pensions, interest, and dividends but it excludes capital gains. Median household income is the income of the “typical” household—that is, equal numbers of households have more and less income.
10 Bureau of Labor Statistics
In all three categories, Colorado Springs ranked 4th of 6 peer communities. Median household income ranged from as low as $66,392 (Albuquerque) to as high as $96,079 (Boulder). Per capita income ranged from as low as $38,150 (Albuquerque) to as high as $56,506 (Boulder).
11 Bureau of Labor Statistics
Potential Actions
The recent growth in Colorado Springs is encouragement that it is on the right path. Efforts taken in these years should be emulated moving forward. Attracting better-paying jobs, particularly in technology and manufacturing, should be a priority for Colorado Springs, as should keeping restrictions reasonable for home-based businesses.
Cost of Living
What Is This?
Cost of living for a metropolitan statistical area is captured by the Regional Price Parities data collected by the Bureau of Economic Analysis. Regional price parities (RPPs) are regional price levels expressed as a percentage of the overall national price level for a given year. The price levels are determined by the average prices paid by consumers for the mix of goods and services consumed in each community. Taking the ratio of RPPs shows the difference in price levels across communities.
13 Bureau of Economic Analysis
The following chart shows how the “typical” Colorado Springs resident’s income and spending changed—usually increasing—through the 2010s. Points above the diagonal show years when savings increased (or debt was reduced). Points below the diagonal show years when savings decreased (or debt increased). In 2020, as travel decreased and income uncertainty rose due to COVID-19, consumer spending declined significantly in spite of job transitions, both in Colorado Springs and nationally. Median personal income has continued to increase significantly since 2020, resulting in increased savings (or reduced debt) for many households.
14 Bureau of Labor Statistics, Bureau of Economic Analysis
In 2010, Colorado Springs housing rental costs were virtually identical to the national average (101%). Regional costs increased significantly during the decade, and in 2023 rent in Colorado Springs was 23% more than the national average.
15 Bureau of Economic Analysis
The median home price in Colorado Springs rose by half between Dec. 2019 and May 2022 (to $475,000). Since then, prices have stabilized. The median price of a single-family home in June 2024 was $499,000, according to the Pikes Peak Association of Realtors.16
For additional detail on housing data trends, see the Built Environment chapter.
Potential Actions
The HUD Office of Policy Development and Research noted that “land use policies and zoning regulations constrain the supply of affordable housing.”17 One response is the use of “by right” development to enable “timely completion of projects while also reducing regulatory expenses, thereby reducing development costs and encouraging the construction of less-expensive housing.”18 Additionally, zoning incentives can encourage development of affordable units in public transit corridors.19 Finally, the Pikes Peak Housing Network recommends the use of community impact funds to enable private citizens, public entities, and nonprofit organizations to allocate surplus land and other resources for affordable housing, in partnership with for-profit and nonprofit developers.20
The City of Colorado Springs 2024-2028 city plan includes a “strategic doing” framework that recommends actions to help reduce barriers to affordable housing development. They include:
- Partnering with the City Council “to expand incentives and rebates to include missing-middle housing and single-family homeownership, targeting households up to 120% area median income (AMI)” and
- Exploring incentive-based programs “to include entry level and workforce housing in mixed income developments and newly annexed land.”21
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