Most potential buyers are prioritizing affordability
With the Canadian economy still suffering from uncertainty, potential buyers of recreational real estate are understandably cautious.
Although reduced interest rates that had renewed buyers’ interest in cottages in the later part of 2024 have boosted affordability, this has been overshadowed in 2025 by the economic landscape exacerbated by the trade war with the US.
RE/MAX Canada’s 2025 Canadian Cabin and Cottage Trends Report reveals that confidence has subsided so far this year with 59% of those whose housing options have been influenced by the recent tariffs showing weakened sentiment compared with last year.
However, there is still demand and should a trade deal be reached with the US, the market could ignite.
"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," says Don Kottick, President, REMAX Canada. "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."
For those who already own recreational homes, the report is not calling for a decrease in sales in most markets although the growth year-over-year ranges from flat to 10%. Prices are expected to rise though by an average 1.8% compared to a year earlier.
And some investors may look to the cottage market as a good hedge against volatility in stocks with 34% of respondents who are considering purchasing a cabin/cottage viewing recreational properties as a good investment.
"Some buyers see this as a window of opportunity to invest in real estate, while prices are still down from their peak levels, and relatively stable compared to other investment options," adds Kottick.
But for the best chance of realizing returns, pricing is key with affordability remaining top of mind among Canadian cottage buyers. The survey commissioned revealed 57% of respondents said that "affordable purchase price" is a must-have and reasonable maintenance costs ranked high as well, at 35%.
