Colorado Springs has experienced a notable rebound in commercial construction activity in 2025, with nearly 400 new commercial project permits issued—marking a 31% increase over 2024 and the highest volume since 2022. This surge was driven largely by multi‑family and mixed‑use developments, including several large apartment complexes and hotels, alongside institutional renovations and retail expansions. Total construction valuation across the region rose approximately 8% year‑over‑year, reflecting a robust commercial pipeline.([coloradopolitics.com](https://www.coloradopolitics.com/2026/01/05/construction-in-2025-commercial-development-dominates-the-scene-single-family-homes-see-slight-decline/?utm_source=openai))
At the same time, multifamily supply is projected to contract sharply in 2025. After record completions in 2024, new unit completions are expected to fall by over 80%, with starts and units under construction dropping significantly. This tightening pipeline is forecast to support rent growth and occupancy stabilization by mid‑2025.([mmgrea.com](https://mmgrea.com/2025-colorado-springs-forecast/?utm_source=openai))
Labor Cost Trends: Colorado’s construction labor market remains tight, with statewide job growth slowing but construction employment rebounding in 2025. Persistent labor shortages—exacerbated by immigration enforcement and tariff‑driven cost pressures—are contributing to upward pressure on trade labor, journeyman, and subcontractor rates.([colorado.edu](https://www.colorado.edu/today/2024/12/09/colorados-economic-forecast-2025-slower-growth-amid-uncertainty?utm_source=openai))
Equipment Hire Costs: While specific daily, weekly, or monthly equipment rental rates are not publicly disclosed here, contractors should anticipate elevated hire costs due to increased demand from commercial and infrastructure projects, as well as supply chain constraints affecting availability.
Local Cost Drivers: Key factors influencing construction costs in Colorado Springs include permit fees, site access complexity, and material delivery logistics. The surge in commercial permitting has increased demand for inspection and approval services, potentially extending lead times. Additionally, infrastructure modernization and transportation projects—such as road expansions and utility upgrades—can affect site access and staging costs.([enr.com](https://www.enr.com/articles/62060-volume-of-new-colorado-springs-starts-expected-to-jump-42-in-2025-and-then-climb-37-next-year?utm_source=openai))
Economic Context: The broader Colorado economy is forecast to grow moderately in 2025 and 2026, with GDP rising around 2–3% and construction employment adding several thousand jobs. However, slower population growth and labor force constraints may temper cost escalation. Colorado Springs continues to outperform statewide averages in economic resilience, supported by strong tourism, tech talent growth, and airport‑driven economic activity.([colorado.edu](https://www.colorado.edu/today/2024/12/09/colorados-economic-forecast-2025-slower-growth-amid-uncertainty?utm_source=openai))
