Recreational property prices expected to rise by 6.8 per cent in 2024
- 64 per cent of Canadian cottage owners have decided not to sell this year.
- When it comes to a recreational property purchase, half of Canadians prioritize affordability (46 per cent, up from 43 per cent in 2023), followed by proximity to water (35 per cent), and necessary amenities (27 per cent).
Demographic shift in the market
According to RE/MAX brokers and agents, families and young couples have become a significant driver of activity in 59 per cent of recreational markets across
This shift can be attributed to the lifestyle and flexibility afforded by hybrid and remote work. According to a Leger survey commissioned as part of the report, the quality of life found in recreational markets, and the ability to work remotely, have prompted more than one third of Canadian recreational property owners (38 per cent) to spend more time at these secondary properties than they did before the pandemic. The rate is higher among younger buyers: 55 per cent among Gen Z (ages 18-24), and 57 per cent among Millennials (ages 25-39).
To view the full report, please click here .
"Years of research* have shown that Canadians consistently see value in real estate ownership – both as a necessity and an investment. Those who have already gained a foothold in the recreational property market are determined to hold on to this asset, despite mounting affordability concerns across the country," says
"Even the change to the capital gains tax, that will take effect on
Recreational market policy and regulation influences
In an effort to improve the availability of housing supply, short-term rental bans have begun to materialize in some provinces across the country, while others look to introduce new measures to limit allowances. In the wake of this, the Leger survey commissioned by RE/MAX found that these restrictions have not swayed recreational property owners to sell, with 58 per cent remaining steadfast in their investment. By comparison, only 29 per cent are looking to sell, due to the inability to generate the rental income initially anticipated when they purchased their recreational property.
Canadians are split on whether these policies have made buying and selling more complicated, and whether they'll buy/sell as a result (35 per cent say they won't; 31 per cent say they will).
Regional Deep Dive into Canadian Recreational Markets
RE/MAX
- Families and couples are the primary drivers of activity in the recreational property market –82 per cent and 68 per cent respectively, retirees at 59 per cent, and investment buyers at 41 per cent .
- 54.5 per cent of regions in Western and
Atlantic Canada have experienced increased inter-provincial migration activity, whileOntario witnessed increased intra-provincial migration activity.
To view the regional data table, click here .
Market |
Average Residential |
YoY Percentage |
|
Number of |
YoY Percentage |
|
Year- |
Year-End 2024 |
Year- |
Market Type |
||
Q1 2023 |
Q1 2024 |
(+/-) |
|
|
|
(+/-) |
|
(+/-) % |
$ |
(+/-) % |
Sellers/Buyers/Balanced |
|
|
|
|
7.5 % |
|
114 |
117 |
2.6 % |
|
N/A*** |
N/A*** |
N/A*** |
Balanced |
|
Not enough data |
|
N/A** |
|
0 |
3 |
N/A** |
|
-10.0 % |
|
-10.0 % |
Buyer's |
|
|
|
-11 % |
|
6 |
6 |
0.0 % |
|
10.0 % |
|
10.0 % |
Buyer's |
North Okanagan, BC |
|
|
-12 % |
|
15 |
14 |
-6.7 % |
|
2.0 % |
|
5.0 % |
Balanced |
|
|
|
22.7 % |
|
18 |
23 |
27.8 % |
|
5.0 % |
|
3.0 % |
Balanced |
|
|
|
8.1 % |
|
101 |
121 |
19.8 % |
|
10.0 % |
|
5.0 % |
Seller's |
|
|
|
14.9 % |
|
40 |
37 |
-7.5 % |
|
5.0 % |
|
-3.0 % |
Seller's |
Muskoka, ON |
|
|
-5.0 % |
|
46 |
45 |
-2.2 % |
|
3.0 % |
|
5.0 % |
Balanced |
Haliburton County, ON |
|
|
18.7 % |
|
24 |
34 |
41.7 % |
|
6.0 % |
|
8.0 % |
Balanced |
|
|
|
93.1 % |
|
1 |
9 |
800.0 % |
|
33.0 % |
|
50.0 % |
Buyer's |
The Kawarthas, ON |
|
|
93.1 % |
|
1 |
9 |
800.0 % |
|
33.0 % |
|
50.0 % |
Buyer's |
|
|
|
-28.7 % |
|
4 |
9 |
125.0 % |
|
N/A*** |
N/A*** |
N/A*** |
Buyer's |
|
|
|
-7.9 % |
|
35 |
30 |
-14.3 % |
|
-5.0 % |
|
-10.0 % |
Balanced |
|
|
|
-16.1 % |
|
8 |
7 |
-12.5 % |
|
5.0 % |
|
0.0 % |
Seller's |
Manitoulin & |
|
|
3.4 % |
|
29 |
47 |
62.1 % |
|
5.0 % |
|
20.0 % |
Seller's |
Simcoe County, ON |
|
|
10.2 % |
|
6 |
9 |
50.0 % |
|
0.0 % |
|
20.0 % |
Balanced |
|
|
|
-8.0 % |
|
26 |
29 |
11.5 % |
|
3.0 % |
|
15.0 % |
Buyer's |
Kenora & |
|
|
-7.0 % |
|
19 |
16 |
-15.8 % |
|
5.0 % |
|
15.0 % |
Seller's |
|
|
|
-9.1 % |
|
4 |
8 |
100.0 % |
|
18.0 % |
|
6.7 % |
Seller's |
|
|
|
6 % |
|
98 |
76 |
-22.4 % |
|
8.0 % |
|
-15.0 % |
Seller's |
|
|
|
57.5 % |
|
15 |
13 |
-13.3 % |
|
5.0 % |
|
10.0 % |
Seller's |
|
|
|
0 % |
|
15 |
8 |
-46.7 % |
|
0.0 % |
|
0.0 % |
Balanced |
|
|
|
-48 % |
|
7 |
4 |
-42.9 % |
|
5.0 % |
|
-15.0 % |
Seller's |
*The outlooks for 2024 are estimates provided by RE/MAX |
Compared to 2023 market conditions,
Similar to 2023, retirees are driving recreational property sales (notably in
Year-over- year, 83 per cent of regions in
According to RE/MAX brokers' outlook for the remainder of the year,
Four out of the 6 regions analyzed in
Much in line with the Leger survey data, brokers in
Similar to RE/MAX report findings in 2023, there's a nearly even split among
Demand for cottages in
While out-of-province buyers are an increasing trend in recreational markets in
When it comes to amenities, waterfront properties are in highest demand in
Year-over-year, 54 per cent of
Meanwhile, regions that experienced price increases include Manitoulin &
RE/MAX brokers and agents in
On the sales side, some
The majority of recreational markets in
Steady year-over-year price increases have been noted in
Looking toward the summer and winter seasons ahead, demand from families, couples and retirees, alongside limited inventory, are expected to continue impacting home sales and prices. Average recreational property price in
In
Despite a limited number of recreational properties available for sale in
About Leger
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,527 Canadians was completed between
About the 2024 Cottage Trends Report
RE/MAX's 2024 Cottage Trends Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments. The overall outlook is based on the average of all regions surveyed, weighted by the number of transactions in each region. Generation X is defined as those ages 43-58, and Boomers ages 59-79. Each RE/MAX office in independently owned and operated.
*According to a Leger survey commissioned by RE/MAX
**Edmonton Lakes sale price figures and number of sales figures are inclusive of data collected from residential and lakefront property transactions.
About the RE/MAX Network
As one of the leading global real estate franchisors,
RE/MAX was founded in 1973 by Dave and
Forward looking statements
This report includes "forward-looking statements" within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company's business, the Company's ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company's ability to attract and retain quality franchisees, (6) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company's ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company's ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the
SOURCE RE/MAX