The outlook for recreational housing remains positive even as economic uncertainty grows
Canada’s housing market may be facing an uncertain future amid the trade war launched by the US – but prospects for the recreational market are still steady.
The average price of a recreational home in Canada is expected to rise by 4% this year, as outlined in a report from Royal LePage.
The report highlights that recreational houses have remained a constant in an otherwise unpredictable market. Recreational home prices increased by 2.3% in 2024 in contrast with the average price of a home in Canada, which decreased by 3.3%.
As the cottage season ramps up for this year, brokers are expecting business to pick up for the recreational market. “There's always a bit of a boost,” Andrew Thake (pictured top), an Ottawa-based broker at Smart Debt Mortgages with experience in the recreational space, told Canadian Mortgage Professional.
Thake echoed the reports sentiment that recreational home buyers are less sensitive and more resilient to market troubles then a standard home buyer.
“They are a bit more settled in their financial ways,” he said. “They're able to weather different storms that could come up.”
Cottage purchasers are “buying a bit of a lifestyle”
Thake also said that in addition to being financially stable, recreational home buyers also often have different mindsets when seeking out a property. The positive aspects that appeal to buyers’ interests might outweigh a volatile market.
“When you're buying a cottage, you're buying a bit of a lifestyle, if you love boating and water skiing, in good markets and bad [markets], you'll still love boating and water skiing,” he explained.
Thake said that since buyers are following a passion, they see recreational purchases as a long term positive. “Whether you're buying if the market is up or down, you're just going to buy it and enjoy it.”
However, that doesn’t mean recreational home buyers are wholly immune to recent market shifts. Some may hold off on luxury purchases until the economy stabilizes. “Buyer confidence right now seems lower,” said Thake.
Amid the housing crisis, Charles St-Arnaud argues Canada's affordability issue goes beyond policy fixes like mortgage rule changes. https://t.co/idHzQkDBXB
— Canadian Mortgage Professional Magazine (@CMPmagazine) April 10, 2025
Another potential concern comes from increased building costs stemming from tariffs. In a press release in March the Canadian Home Builders Association (CHBA) warned that “Canada’s countervailing tariffs will affect our construction costs here at home, though the government is trying to be strategic to limit that impact.”
Cottages may also be affected, with new starts and renovations to existing properties all costing more.
Could Canadians selling in the US turn their attention to domestic properties?
But some brokers see a potential opportunity amongst the ongoing Canada-US tension. With recent polling showing that Canadians are already gravitating away from the US market, brokers might see renewed interest in recreational properties domestically.
“Canadians that own in the US are interested in selling their place,” said James Harrison, broker and owner of Mortgages.ca. “I definitely could see that being a pivot for some is to maybe sell their property in Florida and buy a cottage or secondary property somewhere in Canada.”
Still, Harrison also tempered expectations, warning that while some Canadians may be turning away from the US, they’re not necessarily focused on a purchase in Canada. Unlike the pandemic, when lockdowns and public health measures saw international travel plunge, property purchases in Europe and Mexico are now an option.
Whether it sees a significant boom or steady growth in 2025, Canada’s recreational home industry may be one of the few points of stability in an otherwise rapidly changing housing market.
“We're always ready to go,” said Thake.
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