If you are thinking about buying in Manitou Springs, you are probably drawn to more than just square footage. This is a small mountain town with historic charm, year-round visitors, and easy access to outdoor recreation, so the value of a property often comes from both lifestyle and long-term potential. If you are weighing a primary home, second home, or rental strategy, it helps to understand how this market really works before you make an offer. Let’s dive in.

Why Manitou Springs Stands Out

Manitou Springs is a compact, tourism-centered town at the foot of Pikes Peak. The city describes tourism as the mainstay of the local economy, and that shows up in the way people use and value property here.

You are not just buying a house in Manitou Springs. You are buying into a setting known for mineral springs, hiking access, scenic landscapes, a walkable downtown, and recurring events that bring visitors through town all year.

That combination makes Manitou different from many nearby markets. For many buyers, the appeal starts with lifestyle, while rental income may be a secondary benefit rather than the only goal.

What Homes Look Like Here

Manitou Springs is small, at about 3.2 square miles, and much of its housing stock reflects that scale. The city has more than 150 historic structures, 27 historic arch bridges, and many homes that are more than 100 years old.

That means you will often see historic cottages, older single-family homes, duplexes, triplexes, and small converted lodging-style properties. Large-scale apartment-style investment opportunities are less common, in part because of the town’s housing mix, lot constraints, and preservation rules.

The city’s housing profile reported 2,676 housing units in 2020. Owner-occupied homes were mostly in single-unit buildings and 2-to-4-unit buildings, and rental inventory also leans toward smaller-scale structures.

For you as a buyer, this usually means inventory can feel limited and highly specific. A property may have a lot of charm and strong appeal, but it may also come with unique maintenance needs, parking limitations, or access challenges tied to narrow and steep streets.

What Drives Buyer and Rental Demand

Tourism is the clearest demand driver in Manitou Springs. The town promotes attractions and experiences including the mineral springs, the Pikes Peak Cog Railway, Cave of the Winds, art, dining, hiking access, and a busy event calendar.

Outdoor recreation adds another layer of demand. Manitou Springs serves as a trailhead area for the Incline and Barr Trail, while the broader region draws steady interest from people visiting Garden of the Gods and other outdoor destinations.

That matters if you are considering a second home or rental. Demand here tends to be tied to weekend travel, vacation use, and special events rather than purely commuter-based housing demand.

This also helps explain why the market can appeal to a mix of lifestyle buyers and investors. Recent ACS-based data place the median value of owner-occupied housing units at about $561,200, with median household income around $85,000, which points to a market that often attracts buyers with both financial capacity and a specific interest in the area.

Buying a Home in Manitou Springs

If your goal is to own and enjoy the property yourself, Manitou Springs can be a compelling choice. You get a distinct setting, a strong sense of place, and proximity to outdoor recreation and downtown amenities that are hard to replicate.

At the same time, you will want to look closely at day-to-day practicality. Older homes can require more upkeep, and steep streets, limited parking, and historic review rules can shape what ownership feels like after closing.

Before you buy, think about how you plan to use the property most of the time. A home that feels magical on a weekend visit may need a closer look if you want easier parking, lower maintenance, or room for future improvements.

Investing in a Long-Term Rental

For some buyers, a long-term rental may be the simpler path in Manitou Springs. The city’s business license information states that long-term rental of dwellings containing fewer than five units is excluded from the city’s business definition, which means the licensing burden is generally lighter than it is for short-term lodging.

That does not mean you can skip due diligence. The city has adopted the 1997 Uniform Housing Code, and Neighborhood Services regularly inspects homes for health and safety issues.

In practical terms, older homes deserve extra attention during your evaluation period. Systems, deferred maintenance, and code-related issues can affect your repair budget and the property’s readiness for tenants.

If the property is in a historic subdistrict, exterior changes visible from the right-of-way may also fall under the Historic Preservation Commission. That can affect renovation timelines, project scope, and design choices.

Short-Term Rentals Have Tight Rules

If you are hoping to buy a home and operate it as a short-term rental, you need to be especially careful in Manitou Springs. The city defines a short-term rental as a stay of 29 days or less, and the rules are much stricter than many buyers expect.

New short-term rentals must be owner-occupied. The owner must use the home as a primary residence for at least 185 days per year, and the property must receive Planning Commission approval before operation.

New short-term rentals also need a 500-foot buffer from other short-term rentals. On top of that, the city caps short-term rentals at 2% of residential structures and does not accept applications once that cap is met.

This is one of the most important points for investors. In Manitou Springs, tourist demand alone does not make a short-term rental viable. Permit eligibility and ongoing compliance are just as important as location and nightly rate potential.

Why STR Due Diligence Matters

A short-term rental permit in Manitou Springs does not automatically carry over with a sale. Permits are issued to the owner, do not run with the property, and expire when the property is sold or transferred.

There are grandfathered permits for some properties approved before June 7, 2016, but even those can be lost if the use is abandoned or discontinued for 12 continuous months. That means you should never assume a property’s past use guarantees your future use.

Operational compliance is also detailed. The city requires occupancy and contact records to be available for review, listings must show the permit number and compliance statement, and short-term rentals must submit a 2% camping and lodging tax return each month.

Annual planning review is also required before renewal. If you are underwriting a deal, these rules need to be part of your numbers and your risk analysis from the start.

Historic Review Can Affect Renovations

Manitou Springs has an active historic preservation system. The city has Certified Local Government status, a Historic Preservation Commission, and design guidelines for work in historic subdistricts.

For you, that means visible exterior alterations may require review and approval. Even if you are comfortable taking on an older home, your renovation plans may need another layer of planning.

This is not necessarily a downside. Historic character is part of what makes Manitou Springs special and supports long-term appeal, but it does mean you should confirm what work is allowed before you count on a renovation strategy.

Parking, Access, and Daily Use Matter

In a market like Manitou Springs, practical details matter as much as charm. The town has narrow, steep streets, and some homes can be more challenging when it comes to access, snow, parking, or guest circulation.

The city also has paid parking downtown and at Barr Trail. For short-term rentals, vehicle limits must be posted, which tells you how seriously operational impacts are treated.

Even if you are buying for personal use, it is smart to think through where you and your guests will park, how easy the lot is to use, and how the location functions during busy tourism periods. Those everyday details can have a real impact on satisfaction and resale appeal.

How Manitou Compares With Nearby Areas

If you love the west side of the Pikes Peak region but want more flexibility, it can help to compare Manitou Springs with nearby Colorado Springs neighborhoods. Old Colorado City and the Greater Garden of the Gods area are the closest lifestyle and visitor-oriented comparisons.

Old Colorado City offers historic character, shopping, arts, and events. Greater Garden of the Gods benefits from major park access and visitor activity, with nearby hotels, cabins, restaurants, and recreation-focused businesses.

For some investors, nearby Colorado Springs may offer a broader set of options. Colorado Springs allows owner-occupied short-term rentals broadly in residential zones and does not have a citywide cap, though non-owner-occupied rentals face zoning and spacing limits.

That is why Manitou Springs is often better viewed as a tighter, lifestyle-first micro-market. If your goal is pure flexibility or a more cash-flow-driven strategy, another nearby area may be worth comparing before you commit.

What to Verify Before You Make an Offer

Before you move forward on a home or rental in Manitou Springs, make sure you confirm the details that can affect value and use.

• Whether the property is eligible for a new short-term rental permit under the city map, 500-foot buffer, owner-occupancy rule, and cap
• Whether any current short-term rental permit would end at closing
• Whether the home is located in a historic subdistrict and what exterior work could require preservation review
• Whether parking, vehicle limits, and site access fit your intended use
• Whether the condition of the home aligns with local housing code requirements, especially if it is an older property
• Whether your intended use triggers local licensing or tax filing obligations

These are not small items in Manitou Springs. They can directly affect whether a property works for your goals, how much money you need to invest after closing, and how easily you can operate the home over time.

The Bottom Line for Buyers and Investors

Manitou Springs can be a smart place to buy if you value character, scarcity, and location. It is especially appealing if you want a home with mountain-town personality and the possibility of long-term upside tied to a well-known visitor destination.

The key is to buy with a clear plan. In this market, charm and demand are real, but so are the rules around preservation, property condition, parking, and short-term rental eligibility.

If you want help evaluating whether a Manitou Springs property fits your personal goals or investment strategy, Lux Living Properties can help you look at the details with a local, hands-on approach.

FAQs

Is Manitou Springs a good place to buy a second home?

• It can be a strong option if you want mountain-town character, access to outdoor recreation, and a compact downtown setting with year-round visitor appeal.

Can you buy a property in Manitou Springs for a short-term rental?

• Possibly, but new short-term rentals must be owner-occupied, require Planning Commission approval, must meet a 500-foot spacing rule, and are subject to a city cap.

Do short-term rental permits transfer with a home sale in Manitou Springs?

• No. The city states that permits are issued to the owner and expire on sale or transfer.

Are long-term rentals easier to operate in Manitou Springs?

• In general, yes. Long-term rental of dwellings with fewer than five units is excluded from the city’s business definition, though owners still need to pay attention to housing code compliance and property condition.

Do historic rules affect homes in Manitou Springs?

• Yes, they can. If a property is in a historic subdistrict, exterior alterations visible from the right-of-way may fall under Historic Preservation Commission review.

What should you check before buying a rental in Manitou Springs?

• You should verify short-term rental eligibility, permit status, historic district location, parking and access, property condition, and any local licensing or tax requirements tied to the intended use.