Over the past few decades, it has become increasingly difficult for Canadians to imagine buying their first home—let alone a cottage. But perhaps the financial key is simply to… combine the two?
More first-time home buyers are turning to recreational properties as their gateway into the housing market, according to Re/Max Canada’s 2026 Recreational Property Report. From cottages and cabins to lakeside properties, the trend indicates a shift of young Canadians stepping “onto the property ladder” outside of cities.
“Buyers are motivated by a mix of practicality and long-term planning,” says the report. “Some are thinking ahead to retirement, while others are seeking a more immediate solution to high urban housing costs.”
Forty-five per cent of prospective buyers surveyed see recreational properties as an entry point into real estate ownership, particularly in the range of 18- to 34-year-olds. Buyers are purchasing these properties for a few key reasons: to use as a primary residence, hybrid work-from-home space, and long-term investment.
Choosing a traditionally recreational property offers an alternative path to home ownership in more affordable regions, with places such as Northern Ontario emerging. And as lifestyle and space become important pillars for buyers, waterfront and rural properties are intriguing options.
“This evolution has fundamentally changed how Canadians define a ‘starter home,’” notes the report.
Ontario sees biggest price drop as cottage market stabilizes
Following pandemic-era peaks, the Ontario cottage market is stabilizing thanks to a period of price correction, says Re/Max. Burgeoning areas such as Simcoe County, Kawartha Lakes, and Orillia have seen double-digit decreases.
But this trend isn’t necessarily uniform. High-traffic destinations with limited inventory, including Muskoka and Niagara-on-the-Lake, continue to see higher prices.
Over on the West Coast, higher-end markets such as Whistler and Canmore remain “out of reach” for most first-time buyers. Other areas, including South Okanagan, B.C., and Sylvan Lake, Alta., are gaining traction for their stable costs and healthy inventory.
Quebec’s sprawling Laurentians are seeing a solid mix of inventory and interest, while Atlantic Canada’s lower price points, slower pace of life, and connections to nature are enticing new buyers.
More generational cottages are hitting the market
While passing down a generational property is a time-honoured tradition for cottagers, many are now choosing to put theirs on the market instead. Between rising cottage management and property costs, complicated estate planning and lifestyle preferences among younger generations, Re/Max notes a steady surge of cottage listings.
Peterborough and the Kawarthas in Ontario are leading the charge, with recreational properties operating as a key source of new listings.
More current owners are also using their properties differently. Many are choosing to convert their seasonal retreat into a full-time or hybrid home as they age, enabling longer-term living.
“The next chapter of Ontario’s recreational real estate market will likely be shaped by continued generational turnover, greater adoption of full-time cottage living, and more financially conscious buyers,” says the report.
Buyers still looking at STRs, but more thoughtfully
Short-term rentals and investment properties remain a pillar of the recreational market. Thirty-nine per cent of Canadians planning to buy a recreational property say they’re considering it because they see it as a good investment, according to Re/Max. That said, buyers are becoming more conscious about how and where they’re investing.
Rather than opting for fixer-uppers with purely speculative gains, Re/Max says that buyers are seeking out turnkey properties with dual purposes. There is less motivation to acquire cottages strictly for short-term rental purposes; these days, buyers are interested properties they can use for themselves and rent out on occasion.
Tourism hubs, such as Muskoka, Niagara-on-the-Lake, and Canmore, continue to attract. But as some regions see more recreational properties used as primary residences—not to mention tighter STR regulations—Re/Max cautions buyers to consider a “careful, numbers-driven approach.”
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