Though economic anxieties may temper buyer demand, home prices in recreational regions are forecast to rise 4% this year
With warmer weather on the way, it won’t be long before Canadians swap snowshoes for flip-flops and backyard views for lakeside escapes. While some buyers may be hesitant to invest in their dream cottage or cabin this year due to ongoing political and economic uncertainty, others are ready to dive in – pushing up recreational property prices across the again.
According to the recently-released Royal LePage® 2025 Spring Recreational Property Report, the median price of a single-family home in Canada’s recreational regions is forecast1 to increase 4.0% in 2025 to $652,808, compared to 2024, as demand for recreational homes – though slightly depressed as a result of geopolitical tensions and economic uncertainty – continues to outpace available supply in most markets.
“The pandemic-era scramble for recreational properties, once reminiscent of a modern-day gold rush, has thankfully eased – along with the chaos of bidding wars and thin inventories. Demand for recreational properties among Canadians, and the lifestyle they offer, remains strong but balanced. While the mainstream market is more sensitive to economic shifts, demand in the recreational segment remains steadfast, even during periods of market hesitation,” said Phil Soper, president and CEO, Royal LePage. “Many families share the deep-rooted desire to own a recreational home, and that is unlikely to change.”
In 2024, the weighted median2 price of a single-family home in Canada’s recreational property regions increased 2.3% year over year to $627,700. When broken out by housing type, the weighted median price of a single-family waterfront property decreased 3.6% year over year to $1,063,400 in 2024, and the weighted median price of a standard condominium remained flat, rising a modest 0.2% to $431,700 during the same period.
“After three years of double-digit price growth during and after the pandemic, recreational property values have settled slightly below peak for the 2025 season,” said Soper. “From 2021 to 2023, demand for cottages surged as Canadians traded cityscapes for lakefront living amid lockdowns, travel restrictions, and the shift to remote work – driving prices to record highs. Now, more than five years on, the market is seeing a return to typical year-over-year price growth.
“Looking ahead, recreational property prices are expected to rise modestly, driven by ongoing supply shortages. New cottages and cabins aren’t being built fast enough to meet buyer demand, which will continue to support long-term price growth.”
Lower interest rates open door to recreational market
Lower interest rates have provided a leg up for prospective homebuyers across the country, including those shopping for a seasonal home or vacation property.
Since June 2024, the Bank of Canada has dropped its overnight lending rate seven consecutive times, resulting in a total decrease of 225 basis points to date. Prior to this series of cuts, recreational property experts predicted in the 2024 Royal LePage Spring Recreational Property Report that buying activity would intensify when Canada’s central bank began to lower the overnight rate.
According to a survey of 153 Royal LePage recreational real estate market professionals across the country,3 in 2025, nearly half (46%) of recreational property experts said that demand has increased in their market due to lower borrowing costs. Seventy-five per cent of experts reported that recreational property buyers in their region typically obtain financing, such as a mortgage or loan, when making a purchase.
“Though recreational property buyers tend to carry less mortgage debt than primary homebuyers – largely because lenders are more cautious when financing seasonal-use properties – lower borrowing costs still serve as a meaningful incentive. When debt burdens on a principal residence ease, it often frees up capacity to invest in a second home,” said Soper. “At the same time, current trade tensions and a weakening Canadian dollar, combined with a growing sense of patriotism, are encouraging more families to stay north of the border. For many, the appeal of U.S. travel has waned, driving renewed interest in Canadian recreational properties.”
Highlights from the release:
- Canada’s provincial recreational markets are expected to see an increase in single-family home prices in 2025, with Atlantic Canada forecast to see the highest level of price appreciation at 8.0%.
- Waterfront houses in Atlantic Canada recorded the highest provincial year-over-year price appreciation in 2024, rising 12.6%.
- 55% of recreational property market experts across the country reported an increase in the average days on market compared to last year, despite a majority (72%) reporting similar or less inventory.
1Royal LePage’s national and provincial forecasts are weighted medians based on a weighted model using sales in each region.
2Royal LePage’s national and provincial weighted median home prices are based on a weighted model using sales in each region.
3A national online survey of 153 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions was conducted between February 27, 2025, and March 19, 2025.