For cottage hopefuls, buying a property in early 2025 was finally going to be a reality. Inflation was getting under control. Interest rates were dropping. Price increases had slowed. But then U.S. President Donald Trump started talking about tariffs, and cottage buyers slumped.
According to a new report from Re/Max Canada, 59 per cent of Canadians whose housing options have been impacted by the tariffs say they are less confident in the housing market now than they were in 2024. As a result, many Canadians have paused on buying or selling cottages until the tariff situation is resolved.
“Markets don’t like uncertainty, and we’re seeing that sentiment manifest in a quieter-than-normal spring market across recreational and traditional residential properties alike,” said Don Kottick, the president of Re/Max Canada, in the report. “We are optimistic that recreational activity could pick up later this season, but there’s a big ‘but’ looming. Buyers and sellers will need further clarity around Canada’s approach to tariffs now that the election is behind us, before we see a return to more normal levels of activity.”
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In the meantime, cottage prices are expected to remain relatively steady with the national average price predicted to rise by 1.8 per cent across the country. This is despite a shortage in cottage inventory reported across 25 per cent of the country’s regions.
Re/Max says tariffs haven’t caused cottage interest to dim, in fact it may increase. Buyers are just hesitant to make the purchase until they see how the economy fares. Thirty-four per cent of Canadians still see cottages as a good investment. And with fewer Canadians planning to spend vacations in the U.S., more demand could turn to cottage country. A Leger survey conducted in February found that 48 per cent of Canadians were less likely to travel south of the border in 2025.
“As Canadians continue to show their love for local, divert U.S. travel plans, and even choose to sell their recreational properties in sunny states, demand for Canada’s cottage country could increase, similar to what we saw during the pandemic,” said Kottick.
Currently, families are the ones driving the cottage market. They account for 83 per cent of market activity in the country’s regions, eclipsing retirees at 70 per cent. This is, in part, because of a $1 trillion wealth transfer currently underway as Canadian boomers move large portions of their wealth to GenX and millennial heirs.
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The only other major consideration impacting the cottage market is short-term rentals. Restrictions in B.C., Nova Scotia, and parts of Ontario have convinced some cottage owners to sell. Nineteen per cent of cottage owners planning to sell in the next one to two years say it’s because they no longer see investment potential in recreational properties.
All of these factors represent a high-level look at what’s happening in Canada’s cottage real estate market, but each region is experiencing different changes. To get a better sense of what each market looks like, here’s a breakdown by area.
Ontario
Ontario’s market has come to a standstill amidst the economic turmoil. Prices have declined across 50 per cent of the province’s recreational markets. Most notably, Muskoka is leaning towards a buyers’ market. The average cottage price is expected to drop 4.5 per cent from $990,000 to $945,450 by year end. The same is true of Niagara-On-The-Lake. Its proximity to the U.S. is no longer the draw it once was. The average cottage price there is expected to drop six per cent from $925,000 to $869,500 by year end.
Northwestern Ontario, however, will favour sellers. The area has seen an uptick in interest from out-of-province buyers returning to Ontario after living away. The average cottage price there will increase 10 per cent from $443,400 to $487,740 by year end.
British Columbia
B.C. is experiencing a balanced market with healthy demand from buyers. The average cottage price across the province is expected to rise by 1.1 per cent by year end. North Okanagan, Summerland, and Penticton are all expected to see average price increases of three per cent.
The one exception to the balanced market is Whistler, which saw its average price hovering around $1.9 million at the beginning of 2025. According to the report, limited inventory, zoning restrictions, and price segments will cause the area to see varying conditions throughout the year.
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Alberta
Alberta is experiencing stronger demand than much of the country. The average cottage price across the province is expected to rise by 3.3 per cent. A lot of the demand is driven by popular areas such as Banff, Canmore, and Central Alberta. Limited inventory makes these areas lean more towards a sellers’ market.
Edmonton Lakes, however, is experiencing a balanced market with interest from out-of-province buyers in B.C. and Ontario. The area’s average cottage price is expected to increase by five per cent from $641,739 to $673,836 by year end.
Atlantic Canada
The Atlantic provinces will see varying markets over the coming year. Newfoundland and Labrador and South Shore in Nova Scotia are expected to be sellers’ markets due to low inventory. Newfoundland and Labrador will see one of the largest average price increases at 10 per cent, jumping from $198,710 to $218,581.
PEI, meanwhile, will favour buyers as the local community’s reliance on exports softens demand. The average cottage price there is expected to stay steady at $525,000.
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