Canadian cottage buyers on the sideline for now amidst tariff concerns, according to REMAX Canada's 2025 Canadian Cabin & Cottage Trends Report
Recreational property prices expected to rise by 1.8 per cent in 2025
- Among Canadians less confident in the housing market than they were in 2024, 19 per cent said due to the tariff threats, they are holding on buying or selling until there is further clarity.
- If Canadians were to purchase a recreational property, 57 per cent say "affordable purchase price" is a must-have.
- 34 per cent of Canadians who are considering purchasing a cabin/cottage in the next one to two years see a recreational property as a good investment, however new short-term rental rules in some markets have shifted opinions, with 19 per cent who are planning on selling their cabin/cottage in the next one to two years, no longer seeing it as an investment opportunity, influencing their decision to sell.
TORONTO, May 12, 2025 /CNW/ -- Lower interest rates that motivated recreational property buyers in the latter part of 2024 and in early 2025 have been overshadowed by more recent economic uncertainty, according to REMAX's 2025 Canadian Cabin and Cottage Trends Report.
A Leger survey commissioned by REMAX reveals that approximately one in five Canadians who are considering purchasing a cabin/cottage in 2025 say lower prices in 2024 stimulated their buying journey.
With rising consumer confidence levels, lower interest rates and economic stability due to easing inflation prompting Canadians back into the broader real estate market, recreational activity was poised for an upswing. However, market conditions have since taken a hit, with 59 per cent of those whose housing options have been influenced by the recent tariffs saying they are less confident in the housing market than they were in 2024. With that said, the underlying desire is still there and may resurface, should a trade deal and/or tariff pullback materialise.
"Markets don't like uncertainty, and we're seeing that sentiment manifest in a quieter-than-normal spring market across recreational and traditional residential properties alike," says Don Kottick, President, REMAX Canada. "We are optimistic that recreational activity could pick up later this season, but there's a big 'but' looming. Buyers and sellers will need further clarity around Canada's approach to tariffs now that the election is behind us, before we see a return to more normal levels of activity."
Unit sales are not expected to decline year-over-year in the majority of recreational markets analyzed, ranging from flat to +10 per cent, with limited inventory impacting activity. Meanwhile, REMAX brokers and agents are anticipating a national average price increase of 1.8 per cent across the Canadian recreational property market.
Catalysts for the Cottage Market
Volatility in the stock market has renewed interest in Canadian real estate as a safer investment option, with 34 per cent of Canadians who are considering purchasing a cabin/cottage viewing recreational properties as a good investment.
"Some buyers see this as a window of opportunity to invest in real estate, while prices are still down from their peak levels, and relatively stable compared to other investment options," adds Kottick.
Changing sentiment around travel south of the border and heightened interest in Canadian destinations and summer "stay-cations" may be an added boon to the recreational property market. A Leger survey* conducted in February found that 48 per cent of Canadians were less likely to travel south of the border in 2025.
"As Canadians continue to show their love for local, divert U.S. travel plans and even choose to sell their recreational properties in sunny states, demand for Canada's cottage country could increase, similar to what we saw during the pandemic."
Reasons for buying aside, one thing hasn't changed – affordability remains top of mind among Canadian cottage buyers. The survey commissioned by REMAX revealed 57 per cent identified "affordable purchase price" as a must-have and reasonable maintenance costs ranked high as well, at 35 per cent.
To view the full report, please click here.
Demographic Shift in the Market
According to REMAX brokers and agents, families are the primary drivers of current recreational market activity in 83 per cent of regions surveyed, followed by retirees at 70 per cent, couples at 33 per cent, investment buyers at 12.5 per cent and estate/family wealth transfers at 12.5 per cent. This is in contrast to 2018, when retirees were the dominant force in 91 per cent of markets.
The shift can be attributed to lower interest rates, lower property prices, and lifestyle changes sparking buying activity among the younger population.
New Legislation and Policies Influence Investment Appeal
Given the introduction of short-term rental restrictions in British Columbia, Nova Scotia, as well as some parts of Ontario to address the housing inventory shortage,19 per cent of Canadians who are selling a cabin/cottage in the next one to two years say that they no longer see the investment potential of a recreational property, which is influencing them to sell.
Wealth Transfer Ongoing in the Recreational Market
A $1-trillion wealth transfer is currently underway, with a large portion to move from Canadian boomers to younger generations by 2026, according to Chartered Professional Accountants Canada. In the recreational market, soon-to-be cottage owners inheriting family cottages are beginning to consider their next moves. Seventeen per cent of cottage owners who are planning to sell in the next one to two years said the next generation in their family is not interested in taking over the property, influencing their decision to sell, while another 17 per cent plan to put the family cottage on the market as a result of an estate decision.
This significant wealth transfer could trigger more cottage inventory in the coming years, boosting affordability thresholds for many cottage and cabin hunters.
Shifting Interest in Recreational Properties as a Primary Residence
Unique to 'traditional' cottage regions in proximity to urban centres, a small group of homebuyers is looking at recreational markets as a primary residential destination. Due to affordability challenges pushing buyers further out of larger urban areas such as Greater Vancouver, Greater Toronto and even Atlantic Canada hubs, 30 per cent of Canadians who are planning on purchasing a cabin/cottage in the next one to two years see a cabin or cottage as a viable primary residence, while 29 per cent say that housing shortages make a cottage a viable primary residence to consider.
While this is not a trend expected to take off across the board, it is a unique scenario in certain provinces and cities where longer commute times, remote and hybrid work are common. Homebuyers in search of affordability and who love the nature and slower lifestyle that can be achieved beyond urban centres are finding ways to achieve both within their price range.
"With many workplaces pushing for back-to-office, this may not be a forever solution for many professionals, but a great example of how resilient Canadian homebuyers are and their eagerness to invest in real estate that brings both short and long-term value," says Kottick. "With limited inventory, pricing challenges, and many buyers looking for neighbourhoods that are compatible with their lifestyle, it's not shocking to see those who love cottages making the jump to be there fulltime, something we've more commonly seen with retirees."
Regional Deep Dive into Canadian Recreational Markets
REMAX brokers and agents in Canada were asked to provide an analysis of their local market activity for the first quarter of 2025, as well as an outlook for the rest of the year. Overarching regional trends pinpointed by the REMAX network include:
- 46 per cent of regions noted that buyers are coming from urban centres and 29 per cent from local communities, with demand from out of province buyers dwindling compared to previous years at 16 per cent.
- 50 per cent of regions shared that low interest rates have prompted increased buyer activity
- As buyer activity increased early this year, 25 per cent of regions found that inventory shortages continue to persist.
To view the regional data table, click here.
British Columbia
Across British Columbia, the average price of recreational properties is expected to rise by 1.1 per cent in 2025. Recreational markets are experiencing balanced market conditions with healthy demand from buyers, with the exception of Whistler, which is seeing varied conditions based on the price segment and limited inventory.
Families, millennial and Generation X couples, as well as investment buyers are driving current demand for the province's recreation destinations, hailing mostly from the Greater Vancouver, Vancouver Island, and lower mainland. Penticton remains a top retirement destination for local communities looking for a quieter yet close knit community. North Okanagan has some buyers from Alberta, but locals primarily make-up the bulk of the buyer demographic. With lower interest rates and stock market volatility, buyers looking for a Canadian retreat as a long-term investment are picking up, focusing on properties at the lower end of the market. Buyers are still cautious, but real estate in the region is still seen as a safe investment.
Average recreational property prices have already begun to increase over the last year as buyers continue to see British Columbia as a top recreational destination in Canada. Penticton and Summerland both expect to see average price increases of three per cent with interest from local families and foreign buyers looking to move north of the border to South Okanagan.
Buyers in the region are no strangers to co-ownership, with parents and family members commonly assisting or looking for a multi-generational property the whole family can share. In Tofino/Ucluelet and North Okanagan, Gen X families and retirees are considering properties that can be passed to future generations. With the ongoing wealth transfer underway, this trend is expected to continue in British Columbia.
Despite short-term rental restrictions that have gone into effect across the province, nightly rentals are still common in Whistler and Tofino/Ucluelet in specific zones, with limited inventory. In Whistler, Phase 1 and Phase 2 condos, townhomes, and single-family homes are commonly purchased with the intent to rent. Tofino/Ucluelet does continue to see interest in properties that can be used as nightly rentals, but with the zoning restrictions, inventory is not plentiful and remains competitive.
Alberta
Alberta's recreational market as a whole continues to experience strong demand, with average recreational property prices to rise 3.3 per cent in the province this year. As a result of high demand, Banff/Canmore and Central Alberta favour sellers due to ongoing inventory shortages while Edmonton Lakes continues to experience balanced conditions going into the summer months. Despite ongoing economic concerns, declining interest rates over the last year have made the option of a recreational property a reality for those looking to purchase in Alberta.
Buyer demand remains high with families and retirees driving current activity across the province. Edmonton Lakes expects to see out-of-province buyers from British Columbia and Ontario become more active in the summer, a trend seen annually. Popular property features top of mind for buyers are larger properties that offer outdoor green space and access to recreational activities. Waterfront properties continue to be in demand (in Edmonton Lakes and Central Alberta) along with stable Wi-Fi access (in Edmonton Lakes).
Province-wide restrictions, such as British Columbia's short term rental legislature, are limited in Alberta which makes the province appealing to buyers, but popular spots such as Canmore and Edmonton Lakes have localized restrictions buyers should be aware off. The Town of Canmore's recent Liveability Tax Program, implemented for property taxes payable in 2025, requires homeowners to declare if their property in the town is a primary residence.
Uniquely, with the wealth transfer in progress across the country, Edmonton Lakes has experienced some owners opting to sell their recreational properties to settle their estate before it passed down to future generations.
With the uptick in wildfires across Alberta and the Prairies in the last few years, all regions have flagged that climate concerns remain. Buyers from within the province are aware of these events and while it is a concern, it has not deterred buyers. It's noted that these climate events do impact the spaces homeowners enjoy, such as the lower lake levels experienced in Edmonton Lakes.
Ontario
Ontario's cottage country is experiencing some instability amid growing concern from buyers and sellers on the condition of the economy in the next six to 12 months. With concerns growing around employment and the ultimate direction of the tariff negotiations, the market is more or less paused.
Year-over-year home prices have declined across 50 per cent of recreational markets in Ontario between one to 20.3 per cent, including Niagara-on-the-Lake, Peterborough County, Northwestern Ontario, Orillia, and Grand Bend, largely due to increases in available inventory. The exception to this is Northwestern Ontario, which is still experiencing low inventory, but have seen buyer's pause on any decisions until economic conditions improve.
Across the province, REMAX brokers are expecting prices to trend differently in 2025 from region to region as markets anticipate mixed responses from buyers. Sixty per cent of regions are expecting prices to increase as pent-up demand in these regions will place additional pressure on existing inventory while 40 per cent of regions expect price declines as inventory remains steady and more listing go onto the market in the warmer months.
Families and retirees from the Greater Toronto Area (GTA) as well as locals are driving demand across all of Ontario's recreational markets, while Northwestern Ontario is experiencing growing interest from out-of-province buyers who moved out of Ontario and are now returning to communities that are familiar to them.
Waterfront properties are in highest demand across Ontario's recreational property market, followed by access to recreational activities such as skiing and water sports, larger lots with greenspace, and good Wi-Fi.
In Niagara-on-the-Lake, proximity to the U.S. border was once a top amenity, but has lost its lustre following trade tensions, with travel south of the border waning. The region is still expected to see strong demand as buyers look to enjoy other attractions in Ontario's wine country.
Many cottage regions in Ontario such as Prince Edward County and Niagara-on-the-Lake are mostly primary residences, with homeowners in the region year-round. Other regions surveyed (50 per cent) have seen a growing number of families pursuing cottages as primary residences, as affordability remains a concern in Ontario and their home hunt is taking them beyond urban centres, where they feel they can get better value for their budget.
Despite the wildfires across Northern Ontario last year, wildfires are not yet a large concern for buyers. However, recent weather events such as ice storms, power failures and flooding are concerns for current homeowners and potential buyers in Orillia, impacting the locations they're considering.
Atlantic Canada
Half of recreational markets in Atlantic Canada are experiencing seller's market conditions, including South Shore, NS and Newfoundland & Labrador as low inventory persists. Prince Edward Island is experiencing a buyer's market as tariffs and the local community's reliance on exports softens demand whereas Northern Nova Scotia remains balanced as inventory levels rise.
Looking ahead to the remainder of 2025, Newfoundland & Labrador and Northern Nova Scotia are expecting an increase in sale prices by 10 per cent as demand returns in the summer months. Demand is expected to pick up in South Shore, expecting a small increase as local and out-of-province buyers return to the market for well-priced waterfront properties. Demand is expected to remain steady in PEI, with prices to remain stable this year.
Demand for recreation properties in Atlantic Canada are driven primarily by local families and retirees, with South Shore and Newfoundland seeing some interested buyers from Ontario. In Northern Nova Scotia, the Non-Resident Deed Transfer Tax has deterred some buyers, but lower pressure on inventory has motivated locals to make the move for either a primary residence or recreational property in the region.
Waterfront properties remain a top criterion for homebuyers, with retirees in Nova Scotia also looking for quiet neighbourhoods and good Wi-Fi access as they consider properties that can be lived in fulltime. PEI is also seeing a growing number of buyers considering cottages as primary residences, specifically those want more space and access to water and parks. In Newfoundland, a quiet and close-knit community is another top consideration, especially for families looking to get away from urban centres in the warmer months.
Similarly to regions across Canada, Atlantic Canada was anticipating greater activity with the steady decline in interest rates throughout 2024, but recent uncertainty around tariffs and its impact on local industries has made buyers hesitant. In PEI, concern for local tourism, farming and fishing are top of mind and this uncertainty is trickling into the housing market. In Nova Scotia and Newfoundland, it is still too early to see if buyer hesitancy will impact sales as the cottage season will start once the warmer weather kicks in.
Both Nova Scotia and PEI experience seasonal inland flooding, and this is a consideration for buyers in both provinces. Many local buyers are aware of regions that are at higher risk, and this plays a role in where homebuyers begin their cottage search.
About Leger
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,510 Canadians was completed between March 19-24, 2025, using Leger's online panel. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.
About the 2025 Cottage and Cabin Trends Report
RE/MAX's 2025 Cottage and Cabin Trends Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments. The overall outlook is based on the average of all regions surveyed, weighted by the number of transactions in each region. Generation X is defined as those ages 43-58, and Boomers ages 59-79. Each RE/MAX office in independently owned and operated.
*According to a Leger survey on Impacts of Political Tensions commissioned by Leger, found that 48 per cent of Canadians were less likely to travel south of the border in 2025.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC, RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
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