Market snapshot: spring 2026

El Paso continues to benefit from a steady Department of Defense population, a diversifying civilian economy, and a steady trickle of retirees and remote workers drawn by the climate and cost profile. New single-family construction permits are tracking at healthy levels, with a heavy lean toward larger lots in the unincorporated parts of the county.

The market breaks into three distinct segments: the city of Colorado Springs (small-lot infill and tear-down-rebuild), the northern suburbs around Monument and Black Forest (custom builds on one-to-ten-acre parcels), and the rural east and south (Falcon, Peyton, Fountain, Ellicott — often acreage builds with private well and septic).

Military-friendly zones

Fort Carson, Peterson Space Force Base, and the Air Force Academy anchor the east and north sides of the county. Active-duty and recently-separated service members make up a meaningful portion of our VA OTC borrower base. Neighborhoods and unincorporated areas with heavy military populations include:

• Fountain and Security-Widefield. Closest commute to Fort Carson. Lots are smaller and more affordable than the north end.
• Falcon and Peyton. Larger acreage, rural character, a short drive to Peterson SFB and Schriever.
• Monument and Palmer Lake. Premium north-end zones, higher finish levels, near the Academy.

If you are VA-eligible, the VA OTC program pairs naturally with El Paso County lots — zero down on land you already own or land you are acquiring.

Typical build costs

Build costs in El Paso vary sharply by submarket. A straightforward build in Falcon on flat land with municipal utilities costs less than an equivalent custom on a sloped Black Forest lot with private well, septic, and fire-mitigation treed access. Labor and material costs have stabilized from the 2022-2024 spike, but quality framing and finish crews are still booked months out.

A few cost drivers that are specific to El Paso:

• Wildfire mitigation. Black Forest, Monument, and the western foothills carry defensible-space requirements. Factor the site prep into your budget.
• Septic and well. Common in unincorporated areas. Perc tests and well permits add weeks to the pre-construction timeline.
• Site work on sloped lots. Monument and the north side often require engineered foundations and retaining.

Permit timelines

El Paso County has two primary permitting authorities: the city of Colorado Springs for lots inside city limits, and Pikes Peak Regional Building Department for most of the unincorporated county. PPRBD is generally well-organized and predictable — submit a complete packet, expect a defined review window, and plan around it. The city tends to run longer on custom-home reviews due to design review layers in some neighborhoods.

Monument, Manitou Springs, and a handful of smaller jurisdictions have their own cadences. A builder who has worked in your specific town before is worth the premium — they know the reviewer, the submittal format, and the common redlines.

Popular submarkets for 2026 builds

Black Forest

Classic El Paso premium custom-build zone. Treed lots, large parcels, deer traffic. Fire mitigation is non-negotiable post-2013. Builders who know Black Forest are comfortable with the fire code and the foundation requirements for sloped, treed sites.

Monument and Palmer Lake

North-end premium, Academy-adjacent, with stronger views and higher finish levels. Permit reviews are slower, but the neighborhoods are established and the appraisal comp pool is deep.

Falcon and Peyton

Middle-market acreage. Flatter lots, faster permits, military commute. Our most common rural OTC submarket in the county.

Fountain, Security-Widefield, Hanover

South-end commute to Fort Carson. Smaller lots, more affordable price points, a strong first-time-builder market.

East Colorado Springs and Banning Lewis Ranch corridor

Newer subdivisions, production and semi-custom mix. Good entry-level custom zone for buyers who want a mid-size lot.

Water and utility notes

Inside Colorado Springs Utilities territory, water and sewer are municipal — tap fees apply but the infrastructure is reliable. In Donala, Triview, and smaller special districts north of the city, water rates and availability vary. In unincorporated county, most custom builds are on private well and septic — factor the well permit, pump, storage, and septic design into your soft costs.

The El Paso builder landscape

The county has a broad roster of custom builders, production semi-custom builders, and owner-builder support firms. Builders who clear OTC approval consistently:

• Carry a current Colorado Springs Regional Builders Association license or equivalent county registration.
• Have completed a documented portfolio across multiple neighborhoods.
• Provide fixed-price contracts with itemized allowances.
• Carry adequate general liability and workers' comp.
• Know the local fire mitigation, stormwater, and septic rules.

What this means for your 2026 El Paso build

• Pull the perc and well report before you finalize plans.
• Budget site prep realistically for sloped and treed lots.
• Book framers and finish crews early — the good ones are out months.
• If you are VA-eligible, run your entitlement numbers before you commit to a lot.
• Work with a builder who has recent permit experience in your specific town.

Compliance note

Jon Howard is licensed in Colorado. This report covers El Paso County, Colorado. Market observations are drawn from public permit data and our direct underwriting experience in the county — not a forecast, not a commitment to lend. Call for current rates and program terms.

Next step

El Paso is a deep OTC market for us, and particularly for VA OTC. Bring the lot address and a builder name to your scenario call and we can tell you what your build looks like financed in the current market.

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