Why Canadian Recreational Property Prices Are Expected to Rise in 2024

From cozy cottages nestled by serene lakeshores to sprawling retreats offering panoramic views, the allure of recreational properties has captivated the imaginations of both buyers and investors alike. 

The COVID-19 pandemic notably sparked a surge in demand for recreational real estate. As travel restrictions and lockdowns prompted individuals to seek refuge closer to home, the sale of recreational properties soared to unprecedented numbers as more and more people began working remotely. 

Though things quieted down in the wake of the pandemic, experts are speculating that prices will rise again in 2024. 

The recently published Royal LePage 2024 Spring Recreational Property Report provides pricing information for 50 regions encompassing Canada's cottage and cabin country markets.  

In fact, this year all of Canada’s provincial recreational markets should see an increase in single-family home prices, with Ontario forecasted with the greatest price appreciation, at 8 per cent. 

Amidst the peak of the COVID-19 pandemic, the recreational real estate sector witnessed a notable decrease in available housing inventory due to heightened buying activity. While demand has now steadied, the market still contends with persistent low inventory levels, which, when combined with sustained demand, are anticipated to drive prices upwards. 

Many REALTORS® are also anticipating activity in the housing market to intensify once the Bank of Canada cuts lending rates, expected later this year. Though the recreational property market is not as heavily affected by mortgage rates as residential properties, a boost in buyer confidence will see rising activity in all areas. 

For sellers, the current market presents a golden opportunity to capitalize on the growing appetite for recreational properties. Strategic pricing, coupled with expert staging and marketing techniques, can maximize the value of properties and attract eager buyers. Working with seasoned real estate professionals who understand the nuances of the recreational market can prove invaluable in navigating the complexities of buying or selling in this dynamic landscape. 

This much is clear: the recreational lifestyle is very attractive to Canadians year-round. 

Despite variations in regional trends, a considerable percentage of Canadians own recreational properties for personal use, emphasizing the enduring appeal of the recreational lifestyle. While some homeowners relocated full-time to recreational regions during the pandemic, the majority are likely to stay, indicating a sustained interest in recreational living. 

This year, experts expect an increasing number of Canadians to consider embracing recreational living—whether for retirement or as a summer vacation destination—as lower borrowing costs make their recreational home dreams more attainable.