Is Colorado Springs a Good Place to Retire or Downsize?

Colorado Springs is one of the strongest places to retire or downsize in Colorado, and for military families, it's arguably the best city in the state, full stop. The median sold price was approximately $500,000 as of May 2026 (Pikes Peak REALTOR Services Corp.), roughly 13% below the Denver metro's $575,000 (Colorado Association of REALTORS®, Q1 2026). Colorado exempts up to $24,000 of retirement income from state tax for residents 65 and older. And you'll wake up every morning with Pikes Peak on the horizon for free. Here's an honest, ground-level breakdown of what retiring or downsizing in Colorado Springs actually looks like. 

 

Retiring in Colorado Springs means choosing a city of nearly 500,000 people at 6,035 feet elevation, anchored by five military installations, two major hospital systems, approximately 100,000 veterans, and one of the lowest effective property tax rates in the nation. 

 

Why Colorado Springs Works for Retirement and Downsizing 

Colorado Springs consistently ranks among the best places to retire in Colorado for three clear reasons: 

• Outdoor access 

• Healthcare infrastructure 

• Cost of living that still undercuts the Denver metro by a meaningful margin. 

 

WalletHub ranked it 5 nationally for veterans in its most recent analysis (data collected October 2025, published November 2025) and that ranking holds up when you actually live here. 

For military families who've done a PCS to Colorado Springs and want to put down roots, the logic is even cleaner. 

Five installations 

• Fort Carson 

• Peterson Space Force Base 

• Schriever Space Force Base 

• Cheyenne Mountain Space Force Station 

• the U.S. Air Force Academy 

These form the economic and social backbone of the city. That means Tricare-covered healthcare, commissary access, and a veteran peer network that makes the shift from active duty to retirement feel far less jarring than it would in a city without that infrastructure. Mayor Yemi Mobolade confirmed in November 2025 that Colorado Springs is home to approximately 100,000 veterans, making it one of the highest veteran concentrations of any city its size in the country. 

Installation	Branch	Primary Role
Fort Carson	Army	Infantry & combat support
Peterson Space Force Base	Space Force	Space operations & NORAD headquarters
Schriever Space Force Base	Space Force	Satellite command & cyber operations
Cheyenne Mountain Space Force Station	Space Force / NORAD	Aerospace warning & missile defense
U.S. Air Force Academy	Air Force	Officer education & training

 

Beyond the military angle, Colorado Springs is a beautiful place to age actively. Garden of the Gods, a 1,341-acre city park with towering red rock formations, is free and open every day of the year. The city maintains an extensive trail network across dozens of parks and open spaces.  

According to Visit Colorado Springs, the area enjoys an average of 300 days of deep blue skies and abundant sunshine annually 

Visit Colorado Springs describes the climate as averaging 300 days of "deep blue skies and abundant sunshine", a figure reflecting any measurable sunshine per day, which by that measure consistently exceeds the national average. If your retirement vision involves staying active without driving hours to a trailhead, Colorado Springs delivers that from your back door. 

For a deeper look at neighborhoods, schools, and everyday quality of life in the Springs, our Living in Colorado Springs guide covers the city block by block. 

 

Colorado Springs Retirement Tax Benefits: What You Actually Keep 

Colorado's retirement tax picture is more favorable than most people realize, and for military retirees specifically, it's among the best in the region. 

Situation	Annual State Income Tax Deduction	Notes
Ages 55–64 (all retirees)	Up to $20,000 per person	Covers Social Security, pensions, 401(k)/IRA distributions
Ages 65+ (all retirees)	Up to $24,000 per person	Each spouse claims separately — couples can shield up to $48,000 combined
Military retirees under 55	Up to $15,000 in military retirement pay	Per HB23-1084, applicable through tax years commencing before Jan 1, 2029
Senior Homestead Exemption	50% off first $200,000 of assessed value	Must be 65+, owned and occupied home ≥10 consecutive years; legislatively funded for tax years 2025 and 2026

 

Colorado's flat state income tax rate is 4.40%. The Colorado statewide average effective property tax rate is approximately 0.49% one of the lowest in the nation, though El Paso County's actual rate runs closer to 0.73% per the El Paso County Treasurer. Groceries and prescription medicine are also exempt from Colorado sales tax. 

A note on HB23-1084: This law extends the military retirement pay deduction to "tax years commencing before January 1, 2029," covering tax years 2022 through 2028. Veterans under 55 can deduct up to $15,000 of military retirement pay from state taxable income; those 55 and older qualify under the standard pension deduction tiers above. This is meaningful money if you retire as an E-7, E-8, or O-4 and are drawing a pension well before your 55th birthday. 

Note: The Senior Homestead Exemption has been legislatively funded for tax years 2025 and 2026. Continuation beyond 2026 is subject to future state appropriation and has not yet been confirmed. 

 

Downsizing in Colorado Springs: What the Housing Market Looks Like Right Now 

Downsizing in Colorado Springs doesn't mean settling; it means more options at better prices than most comparable Front Range cities. The current market is more buyer-friendly than it's been in years. 

Data reported for May 2026, the median sold price in El Paso/Teller Counties is approximately $500,000, essentially flat for four-plus years after the sharp run-up of 2020–2022. Homes are sitting on the market for an average of 43 days, up 5% from the prior year, meaning buyers have more time and negotiating room. Inventory rose steadily through 2025 before pausing in May 2026, signaling a market that's rebalancing rather than crashing. 

For a retiree or downsizer selling a larger home elsewhere and arriving with equity, this is a favorable entry point. Active listings across these communities can be browsed on Zillow or the Pikes Peak MLS. 

 

Popular neighborhoods and communities for 55+ and downsizing buyers: 

Neighborhood	Price Range (approx.)	Key Features	Best For
Flying Horse (North)	$600K–$900K+	Private golf club, ranch-style homes, gated feel	Luxury buyers, active lifestyle
Wolf Ranch (NE)	$450K–$650K	New construction, community lake, trail system	Main-level living, families nearby
Cordera (NE)	$450K–$600K	Clubhouse, pool, mixed-age community	Social retirees, walkable amenities
Old Colorado City / Broadmoor (West)	$550K–$800K+	Walkability, character, proximity to Garden of the Gods	Lifestyle-first buyers
Fountain (South)	$350K–$480K	Incorporated city, proximity to Fort Carson, affordability	Military retirees on a tighter budget
Security-Widefield (South)	$320K–$440K	Unincorporated El Paso County, budget-friendly; note: some areas near Peterson SFB flight paths	Budget-conscious buyers; research noise zones first

 

A practical note on Fountain vs. Security-Widefield: Fountain is its own incorporated municipality with its own city services and a distinct small-town feel. Security-Widefield is an unincorporated community in El Paso County, no city government, different service structures, and portions of it sit beneath Peterson Space Force Base flight paths. Both are popular with Fort Carson families for the proximity and affordability, but they're meaningfully different day-to-day. Worth a conversation with your agent before committing. 

The most important question when evaluating a downsize move isn't "which neighborhood looks nicest online?" It's: Can you live entirely on one level if you need to five years from now? Most newer ranch-style homes and patio homes in Colorado Springs are designed with that in mind, main-floor primary suite, laundry, and full bath which keeps your options open as your needs evolve. 

 

Healthcare Access for Retirees in Colorado Springs 

Healthcare access in Colorado Springs is solid, with a well-distributed network across the metro. Below is a full picture of the medical resources available to retirees, civilians and military alike. 

Facility / System	Type	Notes
UCHealth Memorial Hospital Central	Civilian — full-service hospital	Trauma, specialty, and emergency care; central location
Penrose-St. Francis Health Services	Civilian — full-service hospital	Penrose Hospital + St. Francis Medical Center; strong cardiac and orthopedic programs
Evans Army Community Hospital (Fort Carson)	Military — Tricare inpatient/outpatient	On-post access for active duty and eligible retirees
VA Outpatient Clinics (3 locations, COS area)	VA — outpatient	Primary care, mental health, and specialty referrals
Rocky Mountain Regional VA Medical Center (Aurora)	VA — inpatient/surgical/specialty	Approximately 70 miles north; about an hour's drive via I-25

 

Most master-planned communities in the northern corridor. Flying Horse, Wolf Ranch, Cordera are within 10–15 minutes of clinics and urgent care centers along the Powers and Woodmen corridors. Military retirees benefit from multiple layers of coverage: Evans Army Community Hospital for on-post needs, VA outpatient clinics across the city, and Rocky Mountain Regional for anything requiring inpatient or specialty VA care. 

One health consideration worth naming directly: Colorado Springs sits at 6,035 feet. Most people adapt without issue, particularly those already acclimated from active-duty service here. But if you or your spouse has COPD, heart disease, or other cardiovascular or pulmonary conditions, have a conversation with your provider before committing a move. The VA's pulmonary medicine team at Rocky Mountain Regional has specific experience with altitude-related concerns for veterans. 

 

What Day-to-Day Life Actually Looks Like Here 

Day-to-day life in Colorado Springs starts with the weather. The city sits in an alpine desert at 6,035 feet, and that translates to low humidity, quick-melting winter snow, and abundant sunshine well above the national average, milder than the "Colorado winters" stereotype suggests. Summers are warm but rarely oppressive; afternoons above 90°F are the exception, not the rule. 

The outdoor infrastructure is real and accessible. Garden of the Gods is free. Pikes Peak is 30 minutes from most of the north side. The city maintains an extensive trail network across Cheyenne Mountain State Park, Palmer Park, Ute Valley Park, and dozens of smaller open spaces, meaning you can be on singletrack in 15 minutes from most zip codes. 

Socially, the city punches above its weight for a mid-size metro. There are symphony performances, local theater, a thriving restaurant and brewery scene along Tejon Street and in Old Colorado City, and a calendar packed with outdoor events and festivals. And if you've spent a career PCSing, landing in a city where a significant share of your neighbors has done the same thing carries genuine social value, that's hard to put a number on. 

The main trade-off compared to Denver is walkability. Colorado Springs is car-dependent for most residents; public transit is limited, and distances between the north and south sides of the city can be substantial. If you're planning for a future where driving may not always be an option, factor neighborhood choice into your decision now. The west side and areas near downtown offer more on-foot accessibility than the northern and eastern corridors. Our YouTube channel walks through specific communities in real time, useful for getting a feel for the streets before you visit. 

 

Who Should (and Shouldn't) Retire or Downsize in Colorado Springs 

Is Colorado Springs a good place to retire or downsize? For military retirees, the answer is often an unambiguous yes. The combination of peer community, five-installation access, meaningful state tax breaks on military retirement pay, and a housing market priced roughly 13% below the Denver metro makes Colorado Springs the strongest retirement option in Colorado for veterans. WalletHub's 5 national ranking for veteran-friendliness is backed up by real infrastructure, not just talking points. 

For civilian retirees and downsizers, it's a strong yes with two honest caveats to plan around: 

• Altitude: If you or your partner has cardiac or pulmonary conditions, consult your physician before committing a move to 6,035 feet. Most people acclimate fine, but it's worth confirming with your doctor before signing a contract. 

• Car dependency: Colorado Springs is not a walkable city for most residents. Choose your neighborhood with that in mind from day one, because retrofitting a bad location choice is expensive. The west side and near-downtown areas give you the best on-foot options. 

If you want dramatic mountain views, a genuine outdoor lifestyle, solid healthcare, and a more affordable entry price than most Front Range alternatives, without moving to a small-town hours from an airport, Colorado Springs is hard to beat. The right next step is touring neighborhoods in person. Flying Horse, Fountain, and Old Colorado City feel completely different from one another, and that on-the-ground difference matters. 

 

FAQ: Retiring and Downsizing in Colorado Springs 

• Is Colorado Springs affordable for retirees on a fixed income? 

Colorado Springs is more affordable than most comparable Front Range cities. The median sold price is approximately $500,000 as of May 2026 (Pikes Peak RSC). Roughly 13% below the Denver metro median of $575,000 (Colorado Association of REALTORS®, Q1 2026). Colorado also offers retirees a state income tax deduction of $20,000–$24,000 per year depending on age, plus a Senior Homestead Exemption of 50% on the first $200,000 of assessed home value for qualifying residents 65 and older (legislatively funded through tax year 2026). 

• What are the best neighborhoods in Colorado Springs for downsizing? 

The most popular options for 55+ buyers are Flying Horse (luxury, golf, ranch-style homes), Wolf Ranch (newer construction, trail access, community lake), and Cordera (mixed-age community with strong amenities). Military retirees focused on Fort Carson access and affordability often look at Fountain and Security-Widefield to the south, though note those two areas are meaningfully different in terms of city services and flight path exposure. 

• Is Colorado Springs good for military retirees? 

Yes, it's widely considered the top city in Colorado and 5 nationally for veterans (WalletHub, data through October 2025). Five military installations, 250+ defense contractors, three VA outpatient clinics, Evans Army Community Hospital, commissary access, and a community of approximately 100,000 veterans make it exceptionally well-suited for service members transitioning to retirement. Colorado also provides a military retirement pay deduction of up to $15,000 for veterans under 55, applicable through tax year 2028. 

• What healthcare is available for retirees in Colorado Springs? 

UCHealth Memorial Hospital Central and Penrose-St. Francis Health Services are the two primary civilian hospital systems. Military retirees also have access to Evans Army Community Hospital at Fort Carson (Tricare-covered), three VA outpatient clinics in the city, and the Rocky Mountain Regional VA Medical Center in Aurora for inpatient and specialty VA care. Most master-planned communities in the northern corridor are within 10–15 minutes of major medical facilities. 

• Does Colorado tax Social Security or pension income? 

Colorado taxes retirement income at a flat 4.40% state rate, but significant deductions apply. Residents ages 55–64 may deduct up to $20,000 in retirement income, including Social Security, pensions, and retirement account distributions from Colorado state taxable income. Residents 65 and older may deduct up to $24,000. Married couples can each claim the deduction separately, shielding up to $48,000 combined. Military retirees under 55 have a separate deduction of up to $15,000 in military retirement pay under HB23-1084. 

• Is the altitude in Colorado Springs OK for retirees? 

For most people, yes. Colorado Springs sits at 6,035 feet, and the majority of residents, including many retirees who've lived here for decades, adapt without significant issues. If you've already served at Fort Carson or another Springs installation, your body likely has a baseline. That said, if you or your partner has COPD, congestive heart failure, or other cardiovascular or pulmonary conditions, speak with your physician before committing a move. The VA's pulmonary medicine team at Rocky Mountain Regional VA Medical Center in Aurora specifically treats altitude-related conditions in veterans. 

 

Thinking about retiring or downsizing in Colorado Springs? Connect with The PCS Team, we'll help you match the right neighborhood to the next chapter of your life.