Recreational home market stabilizes, but inventory and lifestyle demand keep values rising
Canada’s recreational property market may no longer be surging like it did during the pandemic, but prices are still rising – just at a much more moderate pace.
The median price of a single-family home in Canada’s recreational regions is expected to rise 4.0% in 2025 to $652,808, up from $627,700 in 2024, according to a new forecast from Royal LePage. Despite a slowdown in activity, demand continues to outstrip supply in many parts of the country.
“The pandemic-era scramble for recreational properties, once reminiscent of a modern-day gold rush, has thankfully eased – along with the chaos of bidding wars and thin inventories,” said Phil Soper, president and CEO of Royal LePage. “Demand for recreational properties among Canadians, and the lifestyle they offer, remains strong but balanced.”
He noted that unlike the primary residential market, recreational real estate tends to be less sensitive to economic turbulence.
“While the mainstream market is more sensitive to economic shifts, demand in the recreational segment remains steadfast, even during periods of market hesitation,” Soper explained in the report.
From 2021 to 2023, demand for cottages soared as Canadians sought out waterfront and rural escapes during lockdowns and embraced remote work. That surge drove property values to record highs. Now, Soper says the market is returning to more normal, sustainable growth.
“After three years of double-digit price growth during and after the pandemic, recreational property values have settled slightly below peak for the 2025 season,” he said. “Looking ahead, recreational property prices are expected to rise modestly, driven by ongoing supply shortages. New cottages and cabins aren't being built fast enough to meet buyer demand, which will continue to support long-term price growth.”
In 2024, the weighted median price of a single-family home in recreational regions rose 2.3% year over year to $627,700. However, not all property types moved in the same direction. Waterfront home prices declined by 3.6% to $1,063,400, while the median price of a standard condominium remained nearly unchanged, rising just 0.2% to $431,700.
The report also includes findings from a survey of 153 Royal LePage recreational real estate professionals across Canada. Nearly half (46%) said buyer demand was unchanged compared to the same time last year, while 24% said it had increased and another 24% reported a decrease.
Inventory remains limited in many markets, with 33% of agents reporting lower supply than last year, and 39% saying inventory was about the same. Meanwhile, 55% said average days on market had increased in their region.
Soper explained that many recreational property buyers are less reactive to short-term economic changes because they typically have more financial flexibility.
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“Buyers in this space often have the disposable income or savings to move ahead with major purchases, making them less reactive to broader financial shifts,” Soper said.
Still, geopolitical tensions and domestic uncertainty are causing some buyers to hesitate.
“In a time of uncertainty both at home and abroad, Royal LePage agents in multiple recreational markets have observed a withdrawal from some buyers—not as a result of their personal financial circumstances, but rather to adopt a wait-and-see approach as they seek clarity on the US trade dispute and the upcoming federal election,” Soper said.
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