Cottage prices expected to increase this year in Ontario and across Canada

Cottage property prices are expected to increase in Ontario and across Canada this year.

In tough times, the recreational real estate market hasn’t fared well.

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, according to the Royal LePage 2025 Spring Recreational Property report. During the same period, the weighted median price of a standard condominium decreased 5.7 per cent to $468,900.

Royal LePage experts believe the market will improve slightly in 2025. The median price of a single-family home in Ontario’s recreational regions is forecast to increase modestly by one per cent in 2025 to $647,107, Royal LePage said in the report.

In Canada as a whole, the increase is much higher—a single-family home in Canada’s recreational regions is forecast to increase four per cent in 2025 to $652,808, compared to 2024, the report found. Prices in Atlantic Canada and Quebec are forecast to increase the most.

“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.”

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 the 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,” said John O’Rourke, broker, Royal LePage Lakes of Muskoka. “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.”

Cottage country has seen a tightening of short-term rental regulations, which deters investors, O’Rourke said.

“As a result, most buyers in today’s market are end-users purchasing primarily for personal vacation use,” he said.

People are looking for winterized cottages with strong internet connectivity. There is a mix of families looking for weekend cottages and retirees seeking waterfront living with convenient access to amenities.

According to the Royal LePage 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.

Tariff threats and economic uncertainty are likely impacting sales.

“Despite lower interest rates, demand for recreational homes in the Rideau Lakes region has been softer than usual for this time of year,” said Pauline Aunger, broker of record, Royal LePage Advantage Real Estate in Rideau Lakes. “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.”

See the full report here.

Lead photo: Andre Furtado