Cottage Prices to Climb Despite Economic Chaos

Lower interest rates are presenting an opportunity for potential cottage owners, but they could drive up prices.

Recreational property experts are reporting that demand is increasing for these types of homes due to improved borrowing costs.

Current trade tensions and a weakening Canadian dollar, combined with a growing sense of patriotism, are also driving renewed interest in cottages, as more people are looking to stay north of the border.

Given this, and the limited supply, Royal LePage is predicting the median price for recreational properties in Canada will increase 4% in 2025.

But the price appreciation will not be evenly distributed across the country. For instance, Atlantic Canada is forecasted to see the highest price bump at 8%, while the price of a cottage in Ontario is predicted to only increase by a modest 1%, to an average of $647,107.

Why?

Strict short-term rental regulations in the province are a deterrent for investors and those hoping to lease their vacation homes during the off-season. Paired with ongoing tariff talk and broader economic uncertainty, market activity will likely remain relatively flat this spring.