Cottage country home prices to increase in 2026 in Ontario: report

Cottage country and recreational properties in Ontario could see a price increase in 2026, a new report finds.

Recreational property prices have been flat in recent years.

In 2025, the weighted median price of a single-family home in Ontario’s recreational property market increased 0.4 per cent year over year to $631,100, compared to 2024. During the same period, the weighted median price of a single-family waterfront property decreased by five per cent to $809,900, while the weighted median price of a standard condominium decreased modestly by 0.6 per cent to $484,400, Royal LePage said in their Spring Recreational Property Report for 2026.

But prices could go up this year.

The median price of a single-family home in Ontario’s recreational regions is forecast to increase by two per cent to $643,722 in 2026, Royal LePage said in the report.

This is a smaller price jump than the recreational market across Canada, which is forecast to increase by four per cent in 2026 to $604,552, compared to 2025.

Most buyers are looking for higher-priced cottages.

“Demand in Muskoka’s recreational market is being driven largely by buyers searching in the upper price tiers who are less sensitive to broader market pressures and interest rate increases,” said John O’Rourke, broker, Royal LePage Lakes of Muskoka. “Inventory levels and overall demand are relatively similar to this time last year, though properties are sitting slightly longer on the market.”

Short-term rental by-laws across Muskoka, including licence caps, mandatory ‘summer breaks’ and waiting periods for new owners, have made the market less appealing for investors seeking rental income, O’Rourke added.

Most people are buying cottages for personal use as a vacation property rather than as an income-generating asset, and the economy may play a role in this year’s market.

“While demand for luxury recreational homes remains stable, economic uncertainty and changing buyer priorities are expected to keep overall market activity relatively subdued through 2026,” said O’Rourke.

There may also be U.S. buyers out there.

According to a Royal LePage survey, 25 per cent of recreational property experts in Ontario reported an increase in the number of American buyers inquiring about recreational real estate in their area over the past year.

Meanwhile, 36 per cent of recreational property experts reported an increase in inquiries from domestic buyers of recreational real estate in their area.

In the Rideau Lakes area, the recreational market remains relatively steady, with balanced inventory levels and sustained buyer interest, similar to last year, said Pauline Aunger, broker of record, Royal LePage Advantage Real Estate in Rideau Lakes.

“Many buyers are retirees seeking waterfront properties for full-time living, and we are also seeing interest from those exploring rental opportunities,” Aunger said. “Overall, the Rideau Lakes market is expected to remain balanced through 2026, supported by steady demand and improved choice for buyers.”

Lead photo: Andre Furtado