The Future of Colorado Springs Housing: Why Growth Is Moving East Toward Falcon
By Heather Harkema | Harkema Home Team | October 2026
If you’ve driven east on Woodmen Road past Powers Boulevard lately, you’ve probably noticed something. Construction. And lots of it!
New neighborhoods are taking shape, roads are being improved, and areas that once felt like open country are becoming part of Colorado Springs’ next chapter.
For Me…This Story is Personal.
I’ve lived in Falcon and raised both of my children here. They’re now college graduates living in New York City and Denver. I’ve watched this community grow, and after working in Colorado real estate since 1992, I know that understanding where a community is headed matters just as much as knowing where it stands today.
Eastern Colorado Springs and Falcon are becoming one of the Pikes Peak region’s most important long-term housing growth areas.
So, what’s happening, where is all this construction headed, and what does it mean if you’re thinking about buying or selling a home?
Let’s take a look.
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Why Colorado Springs Is Expanding East
With the mountains to the west and established neighborhoods occupying much of central Colorado Springs, some of the region’s largest opportunities for new residential development lie east and northeast.
The Woodmen Road, Powers Boulevard, Banning Lewis Parkway, Marksheffel Road, and Highway 24 corridors are becoming increasingly important.
Developments such as Percheron and Banning Lewis Ranch are helping shape that expansion, while Falcon, Peyton, and surrounding El Paso County communities continue evolving.
These areas aren’t all part of the same jurisdiction. Property taxes, water providers, school districts, and development regulations can differ depending on whether a home is within Colorado Springs or unincorporated El Paso County.
But together, they tell a story of continued residential growth and infrastructure investment.
Percheron: Thousands of Homes Planned Along Woodmen Road
One of the most visible developments is Percheron, located near East Woodmen Road and Banning Lewis Parkway.
887-acre master-planned community
envisions roughly 2,650–2,900 homes
with commercial space, parks, trails, and recreational amenities.
The community welcomed its first residents in 2025, and development continues.
That’s significant growth in one location, especially when you consider the potential need for additional shopping, services, roads, and community facilities.
But here’s something I always remind buyers: A developer’s master plan is a vision, not a guarantee.
Future phases, amenities, and construction schedules can change with market conditions, financing, infrastructure, and government approvals.
Before purchasing in any new development, ask what’s completed, what’s officially approved, and what’s still proposed.
🏡 Considering a new home near Woodmen Road or Falcon?
I can help you compare new construction with established neighborhoods and understand the differences before you buy.
Banning Lewis Ranch: The Bigger Long-Term Growth Story
Percheron is attracting attention, but Banning Lewis Ranch represents an even larger opportunity for eastern Colorado Springs.
The ranch has been central to the city’s long-range expansion plans for decades. Its extensive undeveloped acreage provides opportunities for residential villages, schools, parks, commercial centers, and future transportation connections.
And the planning process is moving forward.
On September 8, 2026, Colorado Springs City Council approved significant planning actions involving two Banning Lewis Ranch areas:
Village B2 — Approximately 512 Acres
Located northeast of Dublin Boulevard and Banning Lewis Parkway, Village B2’s updated master plan accommodates residential, commercial, park, school, and public facility uses.
Village C — Approximately 658 Acres
Located south of Dublin Boulevard and east of Banning Lewis Parkway, Village C includes plans for residential, commercial, school, and park uses.
Together, these areas represent approximately 1,170 acres of planning activity.
That’s substantial, but it’s important to distinguish approved land-use plans from completed subdivisions. Not every acre will contain homes, and actual construction will occur over time.
The official City Council records provide additional details:
Village B2:
Village C:
The takeaway? Eastern Colorado Springs is planning for substantial residential growth well beyond today’s existing neighborhoods.
Woodmen Road and Highway 24: Preparing for More Residents
More homes mean more people traveling to work, school, shopping, and recreation.
That’s why transportation improvements are an important piece of the development story.
Woodmen Road Improvements
Colorado Springs has been planning improvements to Woodmen Road between Powers Boulevard and Highway 24, with a long-term objective of increasing roadway capacity, improving intersections, and providing safer multimodal connections.
These improvements will be phased, and planning does not necessarily mean every segment has a funded construction date.
Highway 24 Improvements Toward Falcon
The Colorado Department of Transportation is advancing improvements to Highway 24 between Garrett Road and Woodmen Road.
The project includes plans for an additional lane in each direction, a wider median, intersection improvements, and new local road connections.
CDOT’s currently published schedule targets summer 2027 for construction to begin.
Official project information:
For residents of Falcon and eastern Colorado Springs, these projects matter. Road capacity and access can influence daily commuting, shopping, and quality of life.
My practical advice? If you’re considering buying east of Powers Boulevard, drive your anticipated commute during the hours you’ll actually be traveling.
A home may look close on a map but feel very different during the morning rush.
What New Construction Means for Homebuyers
Additional housing creates more choices, but new construction isn’t automatically the right choice for everyone.
If you’re comparing homes in Falcon, Percheron, Banning Lewis Ranch, or nearby neighborhoods, look beyond the advertised purchase price.
Property Taxes and Metro Districts: Some newer developments have additional tax obligations associated with infrastructure financing. Review actual property taxes, district debt, and assessments before buying.
Future Development: That beautiful open field across the street may eventually become another subdivision, retail center, or roadway. Understand what’s proposed nearby.
Builder Contracts and Incentives: Attractive financing offers or closing-cost incentives may come with specific terms. Compare the entire transaction, not simply the advertised monthly payment.
Schools and Utilities: Verify school assignments, water providers, utility costs, and community services directly with the appropriate organizations.
And remember, a builder’s sales representative represents the builder. Buyers may choose their own representation, subject to applicable agreements and builder policies.
🔑 Looking at new construction? Before visiting model homes, let’s talk about your options, representation, financing, and what questions to ask.
How Could All This Growth Affect Existing Homeowners?
If you already own a home in Falcon, Peyton, or eastern Colorado Springs, you’re probably wondering what additional construction could mean for your property’s value.
It’s a reasonable question.
New construction can introduce more competition for existing homes, particularly when builders offer financing incentives, closing-cost assistance, or upgraded features.
However, established neighborhoods may offer advantages of their own, including mature landscaping, larger lots, completed infrastructure, and established community surroundings.
Additional retail and improved roads may also make certain locations more convenient over time.
Growth doesn’t automatically mean higher property values, and additional inventory doesn’t necessarily mean lower values.
Every property is different.
If you’re considering selling, it’s worth reviewing not just nearby resale listings but also competing new construction, builder incentives, and recent closed sales.
For a closer look at current market conditions, see my recent article:
🏠 Own a Home in Falcon or Eastern Colorado Springs?
I’d be happy to review your neighborhood’s current market conditions and help you understand how nearby development may influence your selling strategy.
What Could Eastern Colorado Springs Look Like by 2040?
Look at the residential development plans, transportation projects, and growing need for nearby services.
It’s reasonable to expect eastern Colorado Springs and parts of the Falcon corridor to look considerably different over the next 10 to 15 years. Some areas will become more suburban. Others may retain more of their rural character.
What ultimately gets built will depend on market demand, infrastructure, and future planning decisions.
The important thing isn’t predicting exactly how many homes will appear by 2040. It’s understanding the direction of growth and making informed decisions today.
Frequently Asked Questions About Colorado Springs and Falcon Growth
Is Falcon, Colorado, still growing?
Yes. Falcon and surrounding eastern El Paso County continue attracting residential development interest, supported by planned neighborhoods and regional transportation improvements. Actual construction schedules vary by project.
Where is new housing being built east of Colorado Springs?
Notable development areas include Percheron near East Woodmen Road, Banning Lewis Ranch, and communities near Marksheffel Road, Meridian Road, Highway 24, and Falcon.
How many homes are planned for Percheron?
The community’s published long-term vision includes approximately 2,650–2,900 homes. Final development totals and construction timelines may change.
Is Banning Lewis Ranch expanding?
Yes. Colorado Springs City Council approved major planning actions involving Village B2 and Village C in September 2026, representing approximately 1,170 acres combined.
Will Highway 24 be widened near Falcon?
CDOT is planning additional lanes and intersection improvements between Garrett Road and Woodmen Road, with construction currently targeted to begin in summer 2027.
Is Falcon a good place to buy a home?
It can be an excellent fit depending on your lifestyle, budget, property preferences, and commute. The best approach is to compare individual neighborhoods, taxes, utilities, and housing options before deciding.
My Perspective: Growth Matters, but So Does Community
When I think about Falcon, I don’t just think about construction and new subdivisions.
I think about raising my children here.
I think about the neighbors, the families, and the people who have made this area home. I’ve watched Falcon change over the years, and I know that some of those changes have been exciting while others have brought challenges.
I hope we continue growing thoughtfully, with the roads, schools, utilities, and services that residents need.
After more than 30 years in real estate, I’ve learned that the best real estate decisions come from understanding both the property and the community around it.
If you’re thinking about buying, selling, relocating, or exploring new construction in Falcon or eastern Colorado Springs, let’s talk.
I’ll help you sort through your options, understand the local market, and make a decision that works for you.
No pressure.
Just friendly, experienced, straightforward advice.
Heather Harkema
Harkema Home Team | HomeSmart
Serving Falcon, Peyton, Colorado Springs, Black Forest, Monument, and surrounding Pikes Peak communities.
Sources and Further Reading
City of Colorado Springs — Banning Lewis Ranch Village B2 Master Plan Modification
City of Colorado Springs — Banning Lewis Ranch Village C Land Use Plan
Colorado Department of Transportation — US Highway 24 Corridor Improvements
Development information reflects available planning records as of October 2026. Future development, roadway schedules, and infrastructure plans may change.
Important Real Estate & Development Information
Information current as of October 2026. Development plans, home counts, construction timelines, roadway improvements, school boundaries, taxes, and community amenities are subject to change. Buyers should independently verify property-specific details with the appropriate builders, government agencies, school districts, and utility providers.
This article is provided for general informational purposes and does not constitute legal, tax, financial, or investment advice. References to specific developments do not imply affiliation with or endorsement by their developers. Future property values and market conditions cannot be guaranteed.
