Phil Soper, President and CEO of Royal LePage, discusses the real estate firm’s latest report on the recreational housing market in Canada.
TORONTO, March 26, 2025 /CNW/ – According to Royal LePage®, the median price of a single-family home in Canada’s recreational regions is forecast1 to increase 4.0 per cent in 2025 to $652,808, compared to 2024, as demand for recreational homes – though slightly depressed as a result of geopolitical tensions and economic uncertainty – continues to outpace available supply in most markets. All of Canada’s provincial recreational markets are expected to see an increase in home prices this year.
“The pandemic-era scramble for recreational properties, once reminiscent of a modern-day gold rush, has thankfully eased – along with the chaos of bidding wars and thin inventories. Demand for recreational properties among Canadians, and the lifestyle they offer, remains strong but balanced. While the mainstream market is more sensitive to economic shifts, demand in the recreational segment remains steadfast, even during periods of market hesitation,” said Phil Soper, president and CEO, Royal LePage. “Many families share the deep-rooted desire to own a recreational home, and that is unlikely to change.”
In 2024, the weighted median price2 of a single-family home in Canada’s recreational property regions increased 2.3 per cent year over year to $627,700. When broken out by housing type, the weighted median price of a single-family waterfront property decreased 3.6 per cent year over year to $1,063,400 in 2024, and the weighted median price of a standard condominium remained flat, rising a modest 0.2 per cent to $431,700 during the same period.
“After three years of double-digit price growth during and after the pandemic, recreational property values have settled slightly below peak for the 2025 season,” said Soper. “From 2021 to 2023, demand for cottages surged as Canadians traded cityscapes for lakefront living amid lockdowns, travel restrictions, and the shift to remote work – driving prices to record highs. Now, more than five years on, the market is seeing a return to typical year-over-year price growth.
“Looking ahead, recreational property prices are expected to rise modestly, driven by ongoing supply shortages. New cottages and cabins aren’t being built fast enough to meet buyer demand, which will continue to support long-term price growth.”
According to a survey of 153 Royal LePage recreational real estate market professionals across the country,3 nearly half (46%) reported similar demand from buyers for recreational homes compared to the same time last year. An equal amount (24%) reported more demand and less demand. Meanwhile, 55 per cent of respondents reported that the average days on market has increased in their region compared to the year prior. Thirty-nine per cent of respondents reported similar inventory compared to last year, while 33 per cent reported lower levels of supply.
“Unlike the mainstream residential market, which is driven primarily by end-users, the recreational segment tends to see less fluctuation in demand during periods of economic turbulence. Buyers in this space often have the disposable income or savings to move ahead with major purchases, making them less reactive to broader financial shifts,” said Soper. “However, in a time of uncertainty both at home and abroad, Royal LePage agents in multiple recreational markets have observed a withdrawal from some buyers, not as a result of their personal financial circumstances, but rather to adopt a wait-and-see approach as they seek clarity on the U.S. trade dispute and the upcoming federal election.”
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1 Royal LePage’s national and provincial forecasts are weighted medians based on a weighted model using sales in each region. |
2 Royal LePage’s national and provincial weighted median home prices are based on a weighted model using sales in each region. |
3 A national online survey of 153 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions was conducted between February 27, 2025, and March 19, 2025. |
Falling interest rates present opportunities for aspiring cottage owners
Lower interest rates have provided a leg up for prospective homebuyers across the country, including those shopping for a seasonal home or vacation property.
Since June 2024, the Bank of Canada has dropped its overnight lending rate seven consecutive times, resulting in a total decrease of 225 basis points to date. Prior to this series of cuts, recreational property experts predicted in the 2024 Royal LePage Spring Recreational Property Report4 that buying activity would intensify when Canada’s central bank began to lower the overnight rate.
In 2025, nearly half (46%) of recreational property experts said that demand has increased in their market due to lower borrowing costs. Seventy-five per cent of experts reported that recreational property buyers in their region typically obtain financing, such as a mortgage or loan, when making a purchase.
“Though recreational property buyers tend to carry less mortgage debt than primary homebuyers – largely because lenders are more cautious when financing seasonal-use properties – lower borrowing costs still serve as a meaningful incentive. When debt burdens on a principal residence ease, it often frees up capacity to invest in a second home,” said Soper. “At the same time, current trade tensions and a weakening Canadian dollar, combined with a growing sense of patriotism, are encouraging more families to stay north of the border. For many, the appeal of U.S. travel has waned, driving renewed interest in Canadian recreational properties.”
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4 Recreational real estate market revival on the horizon: Royal LePage, March 20, 2024 |
Recreational rental regulations dampen market activity
When cottage owners aren’t using their seasonal retreat, many choose to rent it out to help offset operational costs. However, growing restrictions on short-term rentals, specifically in recreational markets, have made this difficult in some regions.
Thirty-one per cent of recreational property experts reported that there has been a decrease in the number of buyers who intend to use their recreational properties for rental purposes compared to last year; this figure is higher in Ontario (36%) and British Columbia (32%). Nationally, 27 per cent of respondents reported an increase, while 33 per cent reported no change.
“The option to rent out your cottage or cabin in the off-season to generate income is becoming increasingly challenging, due to tighter short-term rental regulations in many regions – particularly in Ontario, Quebec, and B.C. Investors considering recreational properties as an alternative to traditional real estate face the same limitations,” said Soper. “If policies aimed at severely restricting the recreational rental market persist, they risk discouraging buyers and dampening local economies. Seasonal tourism is a vital contributor to employment, small business success, and regional development in cottage country. We encourage policymakers to strike a thoughtful balance, one that protects access to housing for local communities while supporting the vibrancy of local tourism.
“Many of our recreational property specialists recommend that young families try before they buy – by renting for a season to better understand the community, the lifestyle, and what ownership really entails.”
Nationally, 48 per cent of recreational real estate experts surveyed said that homeowners in their region typically use their property as a secondary residence or vacation home. A smaller proportion (27%) said that owners split the use of their home – partly for recreation and partly as a rental property. Across the country, the majority of buyer demand comes from those aged 50 to 64, according to 59 per cent of experts.
“Whether they’re looking for a staycation option or a legacy property for future generations, buyers will continue to be drawn to the beauty of Canada’s recreational communities. The summer weekend getaway to a lakeside cabin or cottage is deeply rooted in Canadian tradition. While some may hold off this year, hesitant amid headlines about trade friction and economic uncertainty, many feel that now is exactly the right time to embrace the enduring appeal of a Canadian rural retreat – strong and free!” concluded Soper.
Royal LePage 2025 Spring Recreational Property Price Forecast and 2024 Price Data Chart (national and regional): rlp.ca/table_2025springrecreationalpropertyreport
ATLANTIC CANADA
In 2024, the weighted median price of a single-family home in Atlantic Canada’s recreational property market increased 8.3 per cent year over year to $461,900, compared to 2023. During the same period, the weighted median price of a single-family waterfront property increased 12.6 per cent to $598,000, while the weighted median price of a standard condominium increased 9.5 per cent to $507,200.
According to a Royal LePage survey of recreational property experts, 46 per cent of respondents in Atlantic Canada reported less inventory this year compared to 2024. An equal number of respondents (46%) reported similar inventory levels, and 69 per cent reported similar or less demand. In the region, 62 per cent of experts said that the average days on market has increased slightly since this time last year.
“Demand for recreational properties has remained steady over the past year, with many buyers motivated by a desire for a getaway home somewhere close to their primary residence,” said Corey Huskilson, sales representative, Royal LePage Atlantic in South Shore, Nova Scotia. “There has been a growing number of potential buyers looking for recreational properties that can double as investment properties, which has resulted in a higher demand for rental-ready listings. While overall sales activity is expected to remain similar to last year, I anticipate a boost in buyer confidence as interest rates continue to decline, resulting in a busy spring season.”
Huskilson noted that while inter-provincial demand has declined since the height of the pandemic, local buyers remain interested. “With more people opting to stay within their province rather than travel abroad, recreational properties in the region remain a sought-after investment. However, there is still limited inventory available which remains a challenge and keeps competition tight amongst buyers.”
According to the survey, 85 per cent of recreational property experts in Atlantic Canada said that buyers in their respective regions typically obtain financing when making a purchase. When asked if lower borrowing costs have impacted demand for recreational properties in their region, 54 per cent of experts said demand has increased slightly, while 38 per cent said it has not changed.
“Demand for recreational properties in Newfoundland continues to be strong, with many buyers looking for a secondary residence or vacation home rather than a rental property to generate income,” said Mike Turner, broker and owner, Royal LePage Turner Realty in Gander, Newfoundland and Labrador. “We have seen a slight increase in available supply, which has given buyers more options. While interest rate cuts have had a minor impact on demand, I anticipate sales activity will remain steady in the coming months as market conditions remain relatively balanced.”
Turner added that many buyers are looking to purchase a recreational property either as a retirement plan, or a seasonal vacation home for their families. He also noted that while inter-provincial demand has eased, there is still strong interest from local buyers.
The median price of a single-family home in Atlantic Canada’s recreational regions is forecast to increase 8.0 per cent in 2025 to $498,852.
Royal LePage 2025 Spring Recreational Property Price Forecast and 2024 Price Data Chart (national and regional): rlp.ca/table_2025springrecreationalpropertyreport
QUEBEC
In 2024, the weighted median price of a single-family home in Quebec’s recreational property market increased 7.6 per cent year over year to $425,300, compared to 2023. During the same period, the weighted median price of a single-family waterfront property increased 6.4 per cent to $521,700, while the weighted median price of a standard condominium increased 3.7 per cent to $345,700.
According to a Royal LePage survey of recreational property experts, 42 per cent of respondents in the province of Quebec reported similar levels of inventory this year compared to 2024, while 30 per cent reported less. Fourty-two per cent of respondents reported similar demand compared to this time last year, while 30 per cent reported an increase. In the region, 55 per cent of experts said that the average days on market has increased compared to this time last year.
“The real estate market in Quebec’s recreational regions saw a solid recovery in 2024, and the first few months of 2025 show demand is continuing to rise,” said Dominic St-Pierre, senior vice-president of business development, Royal LePage. “Inventory is limited, new construction for recreational homes is quite rare, interest rates continue to decline and experienced buyers have the ability, thanks to their robust equity, to aspire to purchase more expensive properties.”
According to the survey, 82 per cent of recreational property experts in the province of Quebec said that buyers in their respective regions typically obtain financing when making a purchase. When asked if lower borrowing costs have impacted demand for recreational properties in their region, 70 per cent of experts said demand has increased, while 21 per cent said it has not changed.
“Urban property markets are normally more sensitive to economic fluctuations and political uncertainty,” added St-Pierre. “It is still difficult to measure precisely the extent of the impact of the current tariff dispute, but so far, Quebec’s recreational property markets appear to be quite resilient.”
He added that certain changes in behaviour could also favour local demand: “Faced with the Trump administration’s controversial decisions, it is likely that some Quebec snowbirds will abandon their second homes in sunny American states and turn to our local recreational markets instead. This could increase competition and further stimulate demand for this property type in Quebec.”
The median price of a single-family home in Quebec’s recreational regions is forecast to increase 7.5 per cent in 2025 to $457,198.
For more regional insights into the province of Quebec’s recreational property markets, click here: rlp.ca/2025springrecreationalpropertyreport_QC
Royal LePage 2025 Spring Recreational Property Price Forecast and 2024 Price Data Chart (national and regional): rlp.ca/table_2025springrecreationalpropertyreport
ONTARIO
In 2024, the weighted median price of a single-family home in Ontario’s recreational property market decreased 1.5 per cent year over year to $640,700, compared to 2023. During the same period, the weighted median price of a standard condominium decreased 5.7 per cent to $468,900.
According to a Royal LePage survey of recreational property experts, 39 per cent of respondents in Ontario reported less inventory this year compared to 2024. Additionally, 46 per cent of respondents reported similar demand. In the region, 61 per cent of experts said that the average days on market has increased since this time last year.
“The Muskoka region has seen a gradual uptick in its inventory levels, which is good news for buyers who are looking for a specific type of recreational property and want more selection to choose from. However, neither increased supply levels nor lower interest rates have translated into a significant boost in demand just yet, leading to higher-than-usual days on market for this time of year,” said John O’Rourke, broker, Royal LePage Lakes of Muskoka.
“Strict short-term rental regulations continue to deter investors and those hoping to lease their properties during the off-season. As a result, most buyers in today’s market are end-users purchasing primarily for personal vacation use. Winterized cottages with strong internet connectivity remain the most in-demand properties, offering the flexibility for remote work. In the short term, ongoing tariffs and broader economic uncertainty are expected to keep market activity relatively flat this spring,” said O’Rourke.
According to the survey, 76 per cent of recreational property experts in Ontario said that buyers in their respective regions typically obtain financing when making a purchase. When asked if lower borrowing costs have impacted demand for recreational properties in their region, 46 per cent of experts said demand has not been impacted.
“Despite lower interest rates, demand for recreational homes in the Rideau Lakes region has been softer than usual for this time of year. Uncertainty surrounding potential capital gains tax changes and the broader political climate, both domestically and internationally, has left many buyers hesitant to make a move. However, comparatively lower inventory levels have helped stabilize prices,” said Pauline Aunger, broker of record, Royal LePage Advantage Real Estate in Rideau Lakes. “Our clientele remains a mix of families looking for weekend cottages and retirees seeking waterfront living with convenient access to amenities. With modest activity expected for the spring market ahead, it remains to be seen how the political landscape will influence the buying and selling of recreational properties in the region this year.”
The median price of a single-family home in Ontario’s recreational regions is forecast to increase modestly by 1.0 per cent in 2025 to $647,107.
Royal LePage 2025 Spring Recreational Property Price Forecast and 2024 Price Data Chart (national and regional): rlp.ca/table_2025springrecreationalpropertyreport
MANITOBA & SASKATCHEWAN
In 2024, the weighted median price of a single-family home in the Manitoba and Saskatchewan recreational property market increased 6.6 per cent year over year to $296,700, compared to 2023. During the same period, the weighted median price of a single-family waterfront property decreased 4.3 per cent to $431,200.
According to a Royal LePage survey of recreational property experts, 57 per cent of respondents in the region reported similar inventory this year compared to 2024. Forty-three per cent reported similar demand, while an equal number of respondents (43%) reported greater demand. In the region, 71 per cent of experts said that the average days on market is approximately the same compared to last year.
“The North Saskatchewan recreational market has traditionally been a small one, attracting a diverse mix of buyers. Some are locals looking for a family-friendly getaway, while others seek luxury retreats outfitted with high-end amenities. As the market gets closer to spring, we have experienced rising demand from both of these buyer segments, further tightening already constrained inventory levels,” said Lou Doderai, broker and owner, Royal LePage Icon Realty in Prince Albert, Saskatchewan. “Recreational properties in this region are often passed down through generations, limiting supply and causing a slower turnover rate compared to other markets. While spring typically brings an uptick in listings, minimal new developments and rising construction costs are expected to keep inventory levels low this year, driving prices up for the foreseeable future.”
According to the survey, when asked if lower borrowing costs have impacted demand for recreational properties in their region, 57 per cent of experts said demand has increased slightly.
“Our market has had a slower-than-usual start to the spring, largely due to consumer hesitancy amid economic uncertainty. While interest rates have been trending downward, they have yet to translate into a significant boost in buyer demand. However, the upside of this softer activity is that inventory levels have grown, providing prospective buyers with ample choice and less competition,” said Rolf Hitzer, broker and owner, Royal LePage Top Producers Real Estate in Winnipeg, Manitoba. “Our market often attracts mature purchasers nearing retirement who are seeking to transition from city living to a more relaxed lifestyle by the lake. In the short term, we anticipate increased activity levels as consumers refocus on purchasing and vacationing closer to home.”
The median price of a single-family home in Manitoba and Saskatchewan’s recreational regions is forecast to increase 4.5 per cent in 2025 to $310,052.
Royal LePage 2025 Spring Recreational Property Price Forecast and 2024 Price Data Chart (national and regional): rlp.ca/table_2025springrecreationalpropertyreport
ALBERTA
In 2024, the weighted median price of a single-family home in Alberta’s recreational property market increased 1.2 per cent year over year to $1,270,800, compared to 2023. During the same period, the weighted median price of a single-family waterfront property increased 6.6 per cent to $663,300. As a large and popular recreational destination, Canmore’s real estate market has a significant impact on prices in Alberta, with its luxury properties in proximity to Banff National Park.
According to a Royal LePage survey of recreational property experts, 45 per cent of respondents in Alberta reported similar inventory this year compared to 2024; an equal amount (45%) reported less inventory. And, 45 per cent of respondents also reported similar demand compared to last year. In the region, 55 per cent of experts said that the average days on market has remained the same or increased slightly since this time last year.
“Falling interest rates have not significantly boosted buying and selling activity in Canmore over the past year, as many purchasers in this market tend to make cash transactions and are therefore less influenced by the cost of borrowing. However, overall demand has remained consistent with historical seasonal fluctuations, even as new home supply has increased slightly, which has been welcome news for those shopping for a recreational home. This spring, buyers will benefit from ample selection in most market segments, including some newly-completed construction projects,” said Brad Hawker, associate broker, Royal LePage Solutions. “Canmore continues to attract active families, mature buyers and retirees who are drawn to its small-town charm, modern conveniences, and world-class outdoor attractions. With its highly walkable community and direct access to nature, Canmore is expected to see steady demand and modest price appreciation throughout the spring season.”
According to the survey, when asked if lower borrowing costs have impacted demand for recreational properties in their region, 55 per cent said demand has not been impacted.
“Buyer demand for recreational homes in the Wabamun Lake and Lac St. Anne regions continues to outpace supply, fueling steady price growth. As Edmonton and its surrounding neighbourhoods expand, more buyers are seeking weekend retreats within a short distance of the city. This increased demand has led to quicker sales, with properties spending fewer days on the market,” said Tom Shearer, broker, Royal LePage Noralta Real Estate. “The recreational market is largely driven by three key buyer groups: local Edmonton families looking for a vacation home, affluent buyers seeking premium lakefront properties, and relocators from other lake regions searching for a year-round residence within commuting distance of the city. As we head into the spring market, we expect strong demand from all of these buyer groups, setting the stage for a robust and competitive season.”
The median price of a single-family home in Alberta’s recreational regions is forecast to increase 2.0 per cent in 2025 to $1,296,216.
Royal LePage 2025 Spring Recreational Property Price Forecast and 2024 Price Data Chart (national and regional): rlp.ca/table_2025springrecreationalpropertyreport
BRITISH COLUMBIA
In 2024, the weighted median price of a single-family home in British Columbia’s recreational property market increased 1.0 per cent year over year to $933,100, compared to 2023. During the same period, the weighted median price of a single-family waterfront property decreased 8.3 per cent to $2,078,700, while the weighted median price of a standard condominium increased 2.3 per cent to $425,200.
According to a Royal LePage survey of recreational property experts, 50 per cent of respondents in British Columbia reported similar inventory this year compared to 2024, and 36 per cent reported similar demand. In the region, 36 per cent of experts said that the average days on market is approximately the same compared to this time last year.
“Legislative hurdles are having a material impact on the Okanagan recreational market. The province’s vacancy tax is making buyers very hesitant, particularly in the waterfront segment,” said Francis Braam, broker and owner, Royal LePage Kelowna. “In British Columbia, properties left vacant for more than six months in a year are subject to additional taxation – an added expense that many part-time recreational users are unwilling to take on. Additionally, with restrictions on short-term rentals in the region, property owners no longer have the ability to lease their homes to offset costs, further limiting investor interest.”
Braam noted that economic uncertainty is expected to keep some buyers on the sidelines this spring, leading to modest price appreciation. “However, limited new development in the region is keeping supply constrained, which should support upward price trends in the long run.”
According to the survey, 45 per cent of recreational property experts in British Columbia said buyers in their respective regions typically obtain financing when making a purchase. When asked if lower borrowing costs have impacted demand for recreational properties in their region, 50 per cent said demand has not been impacted.
“As the spring approaches, demand for recreational homes has been gradually increasing. This uptick is partly driven by the 225-basis-point cut to interest rates over the past several months. While buyers in the multi-million-dollar price range are typically less affected by borrowing costs, lower interest rates have still encouraged some purchasers to enter the market, eager to take advantage of the savings. As a result, inventory levels have tightened slightly,” said Frank Ingham, associate broker, Royal LePage Sussex in Pemberton. “Most buyers continue to come from British Columbia’s Lower Mainland, searching for year-round vacation properties – specifically in Whistler, a region that is world-renowned for its ski mountain ranges. Unlike other parts of the province, Whistler is not subject to British Columbia’s speculation tax, meaning investors are not discouraged from entering the market. However, the majority of buyers remain end-users purchasing for personal use rather than investment purposes.
“Once uncertainty surrounding tariffs subsides, I expect demand to pick up, which will put upward pressure on home prices. Additionally, a weaker Canadian dollar could further fuel interest from domestic buyers, as vacation home ownership within Canada becomes more appealing compared to international alternatives,” added Ingham.
The median price of a single-family home in British Columbia’s recreational regions is forecast to increase 2.0 per cent in 2025 to $951,762.
Royal LePage 2025 Spring Recreational Property Price Forecast and 2024 Price Data Chart (national and regional): rlp.ca/table_2025springrecreationalpropertyreport
About the Royal LePage Spring Recreational Property Report
The Royal LePage Spring Recreational Property Report compiles insights, data and forecasts from 50 real estate markets. Median price data was compiled and analyzed by Royal LePage for the period between January 1, 2024, and December 31, 2024, and January 1, 2023 and December 31, 2023. Data was sourced through local brokerages and boards in each of the surveyed regions. Royal LePage’s national and provincial weighted median home prices and forecasts are based on a weighted model using sales in each region. Data availability is based on a transactional threshold and whether regional data is available using the report’s standard housing types. Prices may change from previous reports due to a change in the number of participating regions.
About the Royal LePage Recreational Property Advisor Survey
A national online survey of 153 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions was conducted between February 27, 2025, and March 19, 2025.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage® Shelter Foundation™, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services® Inc. company, a TSX-listed corporation trading under the symbolTSX:BRE. For more information, please visit www.royallepage.ca.
Royal LePage® is a registered trademark of Royal Bank of Canada and is used under licence by Bridgemarq Real Estate Services® Inc.
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