Young Canadian families look to unique financing methods to support dream of recreational property ownership

Over a quarter of Canadians with children under the age of 18 would consider selling their primary residence in the city in which they live to help finance the purchase of a cottage or cabin

  • Young families are fueling demand: 73 per cent of regions surveyed reported that young families with children drive demand for recreational properties
  • Buyers are increasingly selling their homes in Canada's two largest urban centres and using the equity from the sale to purchase a cottage, cabin or ski chalet
  • Almost two-thirds (65 per cent) of Canadian millennials (18-34 years old) would consider buying a recreational property in the next 10 years
  • Peace and quiet rated as the most important feature to Canadians when considering spending time at a cottage or cabin, beating out spending time with friends and family

TORONTO and KELOWNA, BC, June 27, 2017 /CNW/ - As real estate prices remain high in Canada's urban centres, young families are looking for unique ways to finance their dreams of recreational property ownership. In a recent survey conducted by Leger, more than a quarter (28 per cent) of Canadians with children under the age of 18 indicated they would consider selling their primary residence in the city in which they live in order to purchase a cottage, cabin or ski chalet.

"Many Canadians with young families are determined to own a cottage or cabin and are willing to explore avenues to turn this dream into a reality," said Christopher Alexander, Regional Director, RE/MAX INTEGRA Ontario-Atlantic Canada Region. "As real estate prices in areas of Canada remain high, more buyers are exploring unique financing options such as fractional ownership in a shared property, purchasing a recreational property with a friend and even selling their primary residence and putting the equity into a cottage or cabin."

In a separate survey of RE/MAX brokers and agents, 73 per cent of regions indicated that young families with children were a key driver of demand in their market, including established recreational regions such as the Okanagan Valley in B.C., Canmore, AB, Collingwood, ON and the Laurentians in Quebec. Retirees were also a key driver of demand across Canada, with more than half (55 per cent) of regions surveyed reporting an increase in retiree buyers this year compared to last year.

"Large numbers of retirees and Baby Boomers nearing retirement are putting the equity they received from the sale of their home in cities like Toronto and Vancouver into the purchase of a recreational property," said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "Significant price appreciation in those regions has made recreational property ownership a relatively affordable option for many retirees. This has in turn resulted in the price appreciation that we've seen in popular recreational property markets such as Whistler in B.C. and Haliburton in Ontario."

The RE/MAX survey of brokers and agents found that 39 per cent of regions experienced an increase in demand from buyers leaving either the GTA or B.C.'s Lower Mainland compared to last year. More local markets such as Salt Spring Island, located a few hours away from Vancouver and the Kawarthas in Ontario, experienced significant increases in demand as a result of this trend. Regions as far away as Ottawa's Rideau Lakes Region and P.E.I's north and south shore also received a boost from buyers leaving the GTA who are looking for great value on properties further out from the Greater Golden Horseshoe.

Millennials keen to enter recreational markets

In Leger's survey of Canadians, almost two-thirds (65 per cent) of millennials (18-34 years old) expressed interest in purchasing a cottage, cabin or ski chalet in the next 10 years. A quarter of respondents also indicated they would consider purchasing a recreational property as an investment vehicle to help finance retirement. At the same time however, many millennials feel that high real estate prices in the city in which they live will negatively impact their ability to buy a recreational property in addition to owning a primary residence.

To overcome this gap between demand and affordability, many Canadian millennials are willing to turn to unique financing methods to help purchase a recreational property. Nearly half (44 per cent) of millennials said they would purchase a property with a family member, while 39 per cent would purchase a property and rent it out using a vacation rental site such as AirBnB. Additionally, over a quarter of young Canadians (age 18-34) said they would consider selling the primary residence in which they live, while one in five millennials said they would consider both fractional ownership of a shared property or buying with a friend.

For the full 2017 RE/MAX Recreational Property Report including data and pricing chart, click here.

2016/2017 and 2015/2016 Median Prices (Large Markets)

Region

Housing Type

2015/2016
Median Price

2016/2017
Median Price

Year-over-year
median price

2015/2016
Sales

2016/2017
Sales

Year-over-year
sales

Squamish

All property types combined

$499,000

$589,000

18.04%

883

666

-24.58%

Whistler

All property types combined

$523,000

$540,000

3.25%

971

948

-2.37%

100 Mile House

Waterfront

$345,000

$360,000

4.35%

192

162

-15.63%

100 Mile House

Non-waterfront

$217,500

$223,000

2.53%

493

462

-6.29%

Sun Peaks

Ski-in

$259,000

$310,500

19.88%

123

160

30.08%

Kelowna

Waterfront

$670,000

$980,000

46.27%

166

178

7.23%

Kelowna

Ski-in

$250,000

$260,000

4.00%

145

175

20.69%

Shuswap

Waterfront

$372,000

$520,000

39.78%

100

111

11.00%

Shuswap

Non-waterfront

$290,000

$300,000

3.45%

1049

1230

17.25%

South Okanagan

Waterfront

$322,000

$365,000

13.35%

169

202

19.53%

South Okanagan

Non-waterfront

$290,000

$309,000

6.55%

2586

3030

17.17%

South Okanagan

Ski-in

$257,000

$285,000

10.89%

181

234

29.28%

Canmore

Non-waterfront

$533,090

$536,000

0.55%

455

521

14.51%

Lakes West of Edmonton

Non-waterfront

$182,450

$175,000

-4.08%

59

101

71.19%

Bruce Peninsula

Waterfront

$329,572

$376,398

14.21%

109

147

34.86%

Bruce Peninsula

Non-waterfront

$208,041

$272,114

30.80%

332

383

15.36%

Grand Bend

Non-waterfront

$247,000

$290,000

17.41%

128

239

86.72%

Haliburton

Waterfront

$206,628

$240,067

16.18%

244

347

42.21%

Haliburton

Non-waterfront

$46,573

$66,038

41.79%

368

516

40.22%

Haliburton

Water Access

$189,623

$210,000

10.75%

116

127

9.48%

Parry Sound

Waterfront

$380,000

$410,000

7.89%

231

287

24.24%

Wasaga Beach/Southern Georgian Bay

Non-waterfront

$324,065

$393,237

21.35%

610

601

-1.48%

Orillia

Waterfront

$365,000

$441,500

20.96%

244

257

5.33%

North Bay

Waterfront

$236,000

$286,000

21.19%

99

131

32.32%

Peterborough and Kawarthas (East)

Waterfront

$390,000

$425,000

8.97%

456

497

8.99%

Prince Edward County

Waterfront

$415,000

$575,000

38.55%

126

139

10.32%

Bancroft

Waterfront

$278,000

$308,000

10.79%

200

173

-13.50%

Rideau Lakes

Waterfront

$386,000

$452,000

17.10%

44

101

129.55%

Rideau Lakes

Non-waterfront

$195,000

$206,000

5.64%

338

400

18.34%

 

Key Findings from 2017 RE/MAX Recreational Property Report Omnibus Survey

  • Almost half (43%) of Canadians would consider buying a recreational property in the next 10 years
    • Almost two-thirds (65%) of Canadian millennials (18-34) would consider buying a recreational property in the next 10 years

  • Nearly 1 in 3 Canadians (30%) that currently own property would consider selling the primary residence in the city in which they live in order to help finance recreational property ownership

  • Almost one in five Canadians would consider buying a recreational property in the next 10 years as an investment vehicle to finance retirement:
    • Canadians 18-34 (Millennials): 24%
    • Canadians 35-44 (Gen X): 26%
    • Canadians 45-54 (Gen X): 21%
    • Canadians 55 – 64 (Boomers): 13%
    • Canadians 65+ (Boomers): 7 %

  • 38 per cent of Canadians feel that high housing prices in their primary housing market will discourage them from purchasing a recreational property in addition to owning a primary residence
    • Atlantic Canada: 23%
    • Quebec: 34%
    • Ontario: 41%
    • Manitoba/Saskatchewan: 32%
    • Alberta: 36%
    • BC: 46%

  • More than 1 in 4 Canadians (28%) would consider buying with a family member in order to help finance recreational property ownership
    • Atlantic Canada: 36%
    • Quebec: 23%
    • Ontario: 27%
    • Manitoba/Saskatchewan: 31%
    • Alberta: 26%
    • BC: 32%

  • Millennials (18-34 years old) willing to explore alternative methods to finance the dream of recreational property ownership
    • 44% of Canadian millennials would consider purchasing with a family member
    • 39% of Canadian millennials would consider renting out their property on a vacation rental site
    • 28% of Canadian millennials would consider selling their primary residence in the city in which they live
    • 21% of Canadian millennials would consider purchasing fractional ownership in a shared recreational property
    • 20% of Canadian millennials would consider buying with a friend

  • Canadians with young families (children under 18 years) are willing to explore alternative methods to finance the dream of recreational property ownership
    • 42% of Canadians with children under the age of 18 would consider purchasing with a family member
    • 38% of Canadians with children under the age of 18 would consider renting out their property on a vacation rental site
    • 28% of Canadians with children under the age of 18 would consider selling their primary residence in the city in which they live
    • 23% of Canadians with children under the age of 18 would consider purchasing fractional ownership in a shared recreational property
    • 19% of Canadians with children under the age of 18 would consider purchasing with a friend

  • Features and amenities rated most important when thinking of a weekend at a cottage or cabin:
    • All Canadians:
      1. Find peace and quiet: 56%
      2. Spend time in nature: 51%
      3. Spend time with family: 44%
      4. Relax after a busy work week: 32%
    • Canadian Millennials (age 18-34):
      1. Spend time in nature: 56%
      2. Find peace and quiet: 53%
      3. Spend time with family: 49%
      4. Relax after a busy work week: 46%
    • Atlantic Canadians:
      1. Find peace and quiet: 62%
      2. Spend time with family: 49%
      3. Spend time in nature: 42%
      4. Relax after a busy work week: 32%
    • Quebec:
      1. Spend time in nature: 55%
      2. Find peace and quiet: 53%
      3. Spend time with family: 34%
      4. Relax after a busy work week: 27%
    • Ontario:
      1. Find peace and quiet: 58%
      2. Spend time with family: 49%
      3. Spend time in nature: 49%
      4. Relax after a busy work week: 34%
    • Manitoba/ Saskatchewan:
      1. Find peace and quiet: 54%
      2. Spend time in nature: 53%
      3. Spend time with family: 47%
      4. Relax after a busy work week: 37%
    • Alberta:
      1. Find peace and quiet: 56%
      2. Spend time in nature: 53%
      3. Spend time with family: 44%
      4. Relax after a busy work week: 39%
    • BC:
      1. Spend time in nature: 56%
      2. Find peace and quiet: 54%
      3. Spend time with family: 44%
      4. Participate in some of my favourite outdoor activities: 36%

About the RE/MAX Network:

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. Over 110,000 agents provide RE/MAX a global reach of more than 100 countries and territories. RE/MAX is Canada's leading real estate organization with more than 19,000 Sales Associates and over 750 independently-owned and operated offices nationwide. RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a subsidiary of RE/MAX Holdings, Inc. (NYSE: RMAX). With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children's Miracle Network Hospitals® and other charities. For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.

About RE/MAX INTEGRA and RE/MAX INTEGRA, Ontario-Atlantic Canada      

RE/MAX INTEGRA, founded in 1980, is a privately held company by Canadian entrepreneurs. With regional headquarters in Toronto, Boston, Minneapolis, Indianapolis, Zug, and Vienna, RE/MAX INTEGRA represents nearly a third of all RE/MAX Sales Associates worldwide. The company was founded on the premise of providing outstanding service and support both at the regional level and to the end consumer. 6 The Ontario-Atlantic Canada region has surpassed 10,000 quality Associates; The US regions — New England and the Midwest (including the following states: Minnesota, Wisconsin and Indiana) – account for more than 6,500 Associates with over 2,600 and 3,800 Associates respectively; and the European region leads with more than 16,000 Associates. For more information about RE/MAX INTEGRA, visit www.remaxintegra.com

2017 RE/MAX Recreational Property Broker and Agent Survey 

The 2017 RE/MAX Recreational Property Broker and Agent Survey measures year-over-year median prices, listings and sales for waterfront, non-waterfront, ski-in and water access housing types in key recreational property regions. In addition to providing data from local boards and brokerages, brokers and agents are surveyed on trends, local development and features.  

About Leger 

Leger is the largest Canadian-owned full-service market research firm. A survey of 1529 Canadians was completed online between May 29- June 1, 2017 using Leger's online panel, LegerWeb. Leger's online panel has more than 475,000 members nationally – with between 10,000 and 20,000 new members added each month, and has a retention rate of 90%. A probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.

Forward-Looking Statements 
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding the future performance of the housing market, the Company's financial and operational outlook, the Company's belief that business fundamentals remain strong, as well as other statements regarding the Company's strategic and operational plans. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain agents, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX brand (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the most recent Form 10-K filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov.  Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. 

SOURCE Canadian Creative Fund

For further information: To coordinate interviews, please contact: Western Canada, Wade Paterson, O. 250-860-3628; Kristen Learned, O. 604-688-2505, E: kristen.learned@fleishman.ca; Ontario and Atlantic Canada, Melissa Clemance, O. 905-542-2400, C. 647-285-5776; Galen Wright, O. 416-645-3657, C. 647-869-8697, E: galen.wright@fleishman.ca

Organization Profile

Canadian Creative Fund

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890