This cohort is the main driver of cottage activity in as much as 91% of markets across the country
Generation X is now the top buyer of recreational property in Canada, with this demographic driving activity in 91% of recreational regions surveyed, according to RE/MAX Canada’s 2023 Cottage Trends Report.
Traditionally, the recreational market has been driven by retirees, which includes both Baby Boomers and Gen X. These demographics’ share of the market totalled 91%, per RE/MAX research conducted in 2018.
RE/MAX said that a major factor impelling this Gen X spending spree is the estimated $1 trillion in wealth transfer from the Baby Boomer cohort to younger generations.
Around 51% of Canadians who currently own, or plan to own, recreational property said that their main motivator to buy is the opportunity to pass down the property to their next generation, while 55% said that they are drawn to the improved quality of life that recreational properties offer, especially in comparison to urban living.
“Demand, coupled with the desire to own and keep these properties in the family, may further impact already low inventory levels in this segment of the market,” said Christopher Alexander, president of RE/MAX Canada.
“When it comes to succession planning, recreational properties are always a good addition to any real estate portfolio, especially given the long-term ROI that they typically yield, making them an excellent opportunity for inheritance aspirations as well.”
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The recreational sector’s prospects are shaping up to be stable, with average sale prices projected to rise by 0.9% over the rest of 2023.
“As the lines between recreational and residential properties become increasingly blurred in a trend that emerged during the pandemic, quality of life has become even more important,” added Elton Ash, executive vice president at RE/MAX Canada. “As the warmer weather approaches, and economic conditions begin to stabilize, buyer confidence is returning to recreational markets.”
