Steady Shores: The Enduring Strength of Canada’s Recreational Property Market
October 31, 2025
By Allwyn Dsouza, Senior Analyst, Research and Insights, REIC/ICI
By Allwyn Dsouza, Senior Analyst, Research and Insights, REIC/ICI
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Over the past five years, Canada’s recreational property market experienced a rollercoaster ride. In the early pandemic era, demand for cottages, cabins and country homes exploded as remote work allowed Canadians to swap city skylines for lakefronts and mountain views. Bidding wars and double-digit price gains became common in 2020–2021, with Ontario recreational home prices surging over 30% in one year at the peak of the frenzy[1]. However, the trend is now coming full circle. As many employers call staff back to the office (even if only part-time), the once-frenzied cottage market has downshifted to a more balanced gear – but notably, it has not crashed.
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After three years of rampant growth, recreational property values have settled slightly below their pandemic peaks. Buyers are no longer panic-buying cottages, but fundamental demand remains strong. By 2025, prices are back to modest annual increases in the low single-digits.
Critically, the feared mass sell-off of cottages due to return-to-office mandates never materialized. Despite more Canadians commuting again in 2023–2024, the listings haven’t gone up with many choosing to hold onto their recreational properties as long-term lifestyle investments. In fact, a Leger survey found 38% of recreational property owners are spending more time at their second home than before the pandemic (rising to ~56% among Millennials) – taking advantage of ongoing hybrid-work arrangements to enjoy cottage life whenever possible[2]. Owners treasure the lifestyle and potential long-term investment, so listings have remained sparse, preventing any price free-fall. In short, the return-to-office trend cooled the cottage craze without crushing it. The market today is defined by lower sales volumes, longer days on market, but generally stable to gently rising prices in most leisure markets.
High demand and low supply have helped cushion the market
Nationwide, supply-demand dynamics continue to favour sellers in many cottage country areas, albeit less dramatically than during lockdowns. Inventory remains tight: A 2024 survey of REALTORS® found 41% of recreational markets had even less inventory than the prior year, and another ~33% were unchanged[3]. Demand, while off the pandemic highs, still “far outstrips available supply” in most regions. About two-thirds of agents reported similar or greater buyer demand in 2024 vs 2023 with minimal change in 2025. Among the market tracked by RE/MAX Cottage Trend Report only 5 had slipped into buyers’ territory as of 1Q2025.
Critically, the feared mass sell-off of cottages due to return-to-office mandates never materialized. Despite more Canadians commuting again in 2023–2024, the listings haven’t gone up with many choosing to hold onto their recreational properties as long-term lifestyle investments. In fact, a Leger survey found 38% of recreational property owners are spending more time at their second home than before the pandemic (rising to ~56% among Millennials) – taking advantage of ongoing hybrid-work arrangements to enjoy cottage life whenever possible[2]. Owners treasure the lifestyle and potential long-term investment, so listings have remained sparse, preventing any price free-fall. In short, the return-to-office trend cooled the cottage craze without crushing it. The market today is defined by lower sales volumes, longer days on market, but generally stable to gently rising prices in most leisure markets.
High demand and low supply have helped cushion the market
Nationwide, supply-demand dynamics continue to favour sellers in many cottage country areas, albeit less dramatically than during lockdowns. Inventory remains tight: A 2024 survey of REALTORS® found 41% of recreational markets had even less inventory than the prior year, and another ~33% were unchanged[3]. Demand, while off the pandemic highs, still “far outstrips available supply” in most regions. About two-thirds of agents reported similar or greater buyer demand in 2024 vs 2023 with minimal change in 2025. Among the market tracked by RE/MAX Cottage Trend Report only 5 had slipped into buyers’ territory as of 1Q2025.
Table 1.0
| Region | Avg Price (Q1 2025) | Sales (Q1 2025) | Market Type |
|---|---|---|---|
| Whistler, BC | $1,916,126 | 75 | Balanced |
| Penticton, BC | $654,684 | 3224 | Balanced |
| Summerland, BC | $903,757 | 34 | Balanced |
| Osoyoos, BC | $651,587 | 33 | Balanced |
| North Okanagan, BC | N/A | N/A | Balanced |
| Tofino/Ucluelet, BC | $936,857 | 7 | Balanced |
| Edmonton Lakes, AB | $641,739 | 12 | Balanced |
| Banff/Canmore, AB | $1,325,000 | 122 | Sellers |
| Central Alberta | N/A | 3 | Sellers |
| Muskoka & Area, ON | $990,000 | 49 | Buyers |
| Peterborough County, ON | $711,000 | 170 | Balanced |
| Kawartha Lakes, ON | $727,000 | 203 | Balanced |
| Greater Sudbury, ON | $494,632 | 391 | Sellers |
| Orillia, ON | $1,031,882 | 20 | Buyers |
| Prince Edward County, ON | $1,199,409 | 11 | Balanced |
| Simcoe County, ON | $2,095,000 | 6 | Balanced |
| Grand Bend, ON | $688,840 | 21 | Buyers |
| Northwestern Ontario | $443,400 | 7 | Sellers |
| Niagara-On-The-Lake, ON | $925,000 | 39 | Buyers |
| Newfoundland & Labrador | $198,710 | 20 | Sellers |
| South Shore, NS | $116,875 | 4 | Sellers |
| Northern Nova Scotia | $406,243 | 14 | Balanced |
| Prince Edward Island | $525,000 | 35 | Buyers |
Source: REMAX
While many cottage buyers are equity-rich or paying cash, 78% still take out financing for their purchase[4]. Notably, the Bank of Canada began cutting interest rates in mid-2024, totaling 225 basis points of relief by early 2025. This has started to perk up buyer interest. Royal LePage reports that nearly half of recreational property experts saw demand increase as borrowing costs fell[5].
Price trends reflect this resilient demand amid limited supply. Median price of a single-family recreational home rose to $627,700 in 2024, a 2.3% yearly gain and are expected to increase further by 1.8% in 2025[6]. For comparison, that is still about 59% higher than pre-pandemic values (the national recreational median in 2019)[7]. By contrast, the broader Canadian housing market (all home types in major markets) saw a roughly 4% price decline in 2025 and are just 40% higher than the pre-pandemic 2019 level. Meaning, cottage-country prices have held onto pandemic gains more firmly than big-city markets.
Price trends reflect this resilient demand amid limited supply. Median price of a single-family recreational home rose to $627,700 in 2024, a 2.3% yearly gain and are expected to increase further by 1.8% in 2025[6]. For comparison, that is still about 59% higher than pre-pandemic values (the national recreational median in 2019)[7]. By contrast, the broader Canadian housing market (all home types in major markets) saw a roughly 4% price decline in 2025 and are just 40% higher than the pre-pandemic 2019 level. Meaning, cottage-country prices have held onto pandemic gains more firmly than big-city markets.
Figure 1.0
Source: blog.royallepage.ca
Further, in recreational markets, supply is limited by geography (only so many lakes), slow turnover (families often hold cottages for generations), and in many areas, outright bans on development (parks, conservation land). While both markets (recreational and city homes) face supply shortages, but in cottage country it’s even more chronic – you can’t simply build a new lake. This has kept prices relatively firm. New listings remain well below pre-pandemic norms in many vacation spots, as owners cling to their piece of paradise.
The return-to-office vs. remote work tug-of-war is still playing out. Some experts argue we are heading toward a permanently more hybrid world, which would continue to support recreational property use (e.g. the ability to spend 3-day weekends at the cottage, or work remotely for weeks at a time). Others point out that if large employers mandate nearly full-time office presence (as some banks have signaled for 2025[8]), it could further soften demand for far-flung cottages that are impractical for weekend commutes. So far, hybrid work is winning out, and many Canadians are proving adept at combining office and cottage life. The cottage market has been resilient, not collapsing under RTO pressures.
Looking Ahead: 2026 May Be a Turning Point for Canada’s Recreational Market
Canada’s recreational real estate sector — anchored by lakeside cottages, forest retreats, and waterfront hideaways — appears to be approaching a critical inflection point. Two powerful forces are converging: a historic generational wealth transfer, with over $1 trillion in assets poised to move from Baby Boomers to their heirs, and a slowing national economy that’s beginning to weigh on consumer and investor confidence.
While the cottage market has long resisted the volatility of urban housing cycles, the combined impact of succession planning, estate decisions, and macroeconomic pressure may gradually unlock inventory that’s remained tightly held for decades. As families weigh whether to hold, share, or sell these cherished properties, the market may shift from one of scarcity and sentiment to one shaped increasingly by liquidity and legacy. The result? A subtle but significant rebalancing of Canada’s recreational real estate landscape.
According to various reports, Canada is entering its largest-ever intergenerational wealth transfer, with more than $1 trillion expected to shift from Baby Boomers to their children by between 2023-2026[9]. Much of that wealth is tied up in real estate, including second homes and recreational properties — many purchased decades ago for a fraction of today’s value.
Cottages are often held not just as investments but as family legacy assets but there are growing conversations around whether it makes sense to pass them on, sell, or liquidate, especially with the maintenance costs and tax implications.
This generational decision-making may gradually unlock inventory in historically tight markets, especially in Ontario’s Kawarthas, Muskoka, and Simcoe County — where listings dropped to multi-year lows during the pandemic.
At the same time, the macroeconomic backdrop is cooling. Canada's GDP contracted by 1.6% in Q2 2025, down from 2.2% growth recorded in Q1 2025. With interest rates still hovering near 5% and consumer confidence declining, discretionary spending, including second-home purchases is softening.
A Market in Transition, Not in Turmoil
Unlike urban condos or speculative flips, Canada’s cottage market has always been anchored in legacy, lifestyle, and land scarcity. It’s intergenerational and deeply emotional, especially when it comes to prized waterfront properties, which remain finite and fiercely held.
As the $1-trillion wealth transfer unfolds and economic uncertainty continues to reshape financial priorities, more families will be prompted to reassess their ties to recreational real estate. Whether they choose to pass down, sell, or co-own these properties, the iconic lakeside cottage is shifting from a static asset to a dynamic decision point.
We’re expecting a gradual trickle of listings, not a tidal wave, but even a modest uptick in inventory will reshape supply dynamics and open doors for a new generation of buyers.
Nonetheless, in the current environment, recreational real estate offers relative stability. It’s supported by chronic supply shortages, limited new development, and lifestyle-driven demand that persists even amid rising rates and volatile rental and condo markets. For investors and families alike, it may offer a more resilient bet — one cushioned by low turnover and long-term utility rather than short-term speculation.
As Canada’s recreational property market navigates demographic shifts and economic uncertainty, the role of skilled, ethical real estate experts — from brokers and advisors to investors — has never been more vital. Backed by a 70-year legacy of excellence, the Real Estate Institute of Canada (REIC) empowers its members to lead through market transitions — from generational succession planning for family cottage portfolios to unlocking asset liquidity amid economic shifts. Through advanced education and globally recognized designations across multiple real estate markets, REIC equips industry leaders with the credibility, skills, and ethical standards that today’s market demands.
The return-to-office vs. remote work tug-of-war is still playing out. Some experts argue we are heading toward a permanently more hybrid world, which would continue to support recreational property use (e.g. the ability to spend 3-day weekends at the cottage, or work remotely for weeks at a time). Others point out that if large employers mandate nearly full-time office presence (as some banks have signaled for 2025[8]), it could further soften demand for far-flung cottages that are impractical for weekend commutes. So far, hybrid work is winning out, and many Canadians are proving adept at combining office and cottage life. The cottage market has been resilient, not collapsing under RTO pressures.
Looking Ahead: 2026 May Be a Turning Point for Canada’s Recreational Market
Canada’s recreational real estate sector — anchored by lakeside cottages, forest retreats, and waterfront hideaways — appears to be approaching a critical inflection point. Two powerful forces are converging: a historic generational wealth transfer, with over $1 trillion in assets poised to move from Baby Boomers to their heirs, and a slowing national economy that’s beginning to weigh on consumer and investor confidence.
While the cottage market has long resisted the volatility of urban housing cycles, the combined impact of succession planning, estate decisions, and macroeconomic pressure may gradually unlock inventory that’s remained tightly held for decades. As families weigh whether to hold, share, or sell these cherished properties, the market may shift from one of scarcity and sentiment to one shaped increasingly by liquidity and legacy. The result? A subtle but significant rebalancing of Canada’s recreational real estate landscape.
According to various reports, Canada is entering its largest-ever intergenerational wealth transfer, with more than $1 trillion expected to shift from Baby Boomers to their children by between 2023-2026[9]. Much of that wealth is tied up in real estate, including second homes and recreational properties — many purchased decades ago for a fraction of today’s value.
Cottages are often held not just as investments but as family legacy assets but there are growing conversations around whether it makes sense to pass them on, sell, or liquidate, especially with the maintenance costs and tax implications.
This generational decision-making may gradually unlock inventory in historically tight markets, especially in Ontario’s Kawarthas, Muskoka, and Simcoe County — where listings dropped to multi-year lows during the pandemic.
At the same time, the macroeconomic backdrop is cooling. Canada's GDP contracted by 1.6% in Q2 2025, down from 2.2% growth recorded in Q1 2025. With interest rates still hovering near 5% and consumer confidence declining, discretionary spending, including second-home purchases is softening.
A Market in Transition, Not in Turmoil
Unlike urban condos or speculative flips, Canada’s cottage market has always been anchored in legacy, lifestyle, and land scarcity. It’s intergenerational and deeply emotional, especially when it comes to prized waterfront properties, which remain finite and fiercely held.
As the $1-trillion wealth transfer unfolds and economic uncertainty continues to reshape financial priorities, more families will be prompted to reassess their ties to recreational real estate. Whether they choose to pass down, sell, or co-own these properties, the iconic lakeside cottage is shifting from a static asset to a dynamic decision point.
We’re expecting a gradual trickle of listings, not a tidal wave, but even a modest uptick in inventory will reshape supply dynamics and open doors for a new generation of buyers.
Nonetheless, in the current environment, recreational real estate offers relative stability. It’s supported by chronic supply shortages, limited new development, and lifestyle-driven demand that persists even amid rising rates and volatile rental and condo markets. For investors and families alike, it may offer a more resilient bet — one cushioned by low turnover and long-term utility rather than short-term speculation.
As Canada’s recreational property market navigates demographic shifts and economic uncertainty, the role of skilled, ethical real estate experts — from brokers and advisors to investors — has never been more vital. Backed by a 70-year legacy of excellence, the Real Estate Institute of Canada (REIC) empowers its members to lead through market transitions — from generational succession planning for family cottage portfolios to unlocking asset liquidity amid economic shifts. Through advanced education and globally recognized designations across multiple real estate markets, REIC equips industry leaders with the credibility, skills, and ethical standards that today’s market demands.
[1] bowershomes.com
[2] newswire.ca
[3] canadianmortgagetrends.com
[4] canadianmortgagetrends.com
[5] blog.royallepage.ca
[6] blog.royallepage.ca
[7] canadianmortgagetrends.com
[8] reuters.com
[9] CBC.com
[2] newswire.ca
[3] canadianmortgagetrends.com
[4] canadianmortgagetrends.com
[5] blog.royallepage.ca
[6] blog.royallepage.ca
[7] canadianmortgagetrends.com
[8] reuters.com
[9] CBC.com
Allwyn Dsouza is REIC’s Senior Analyst, Market Research and Insights. He can be reached at [email protected]. Media enquiries can be directed to [email protected].