diff --git a/qmk_cli/helpers.py b/qmk_cli/helpers.py
index 113fda8..8abc757 100644
--- a/qmk_cli/helpers.py
+++ b/qmk_cli/helpers.py
@@ -91,15 +91,15 @@ def find_qmk_userspace():
     if in_qmk_userspace():
         return in_qmk_userspace()
 
-    if cli.config.user.overlay_dir:
-        return Path(cli.config.user.overlay_dir).expanduser().resolve()
-
     if 'QMK_USERSPACE' in os.environ:
         path = Path(os.environ['QMK_USERSPACE']).expanduser()
         if path.exists():
             return path.resolve()
         return path
 
+    if cli.config.user.overlay_dir:
+        return Path(cli.config.user.overlay_dir).expanduser().resolve()
+
     return Path.home() / 'qmk_userspace'