Tariffs and economic uncertainty give some cottage buyers cold feet, says ReMax report

Families are the primary drivers of Canada's recreational property market. Photo by Handout /Postmedia

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Many Canadians are embracing staycations this summer due to tariffs and economic uncertainty, and it appears the same concerns sidelined buyers from diving into the recreational property market in the first quarter of 2025, to ReMax Canada’s Cabin and Cottage Trends Report said. 

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For Canadians whose housing decisions have been influenced by tariffs, 59 per cent said they’re less confident in the real estate market than they were in 2024, according to a Léger survey commissioned by ReMax. Among that group, 19 per cent said they’re holding off on buying or selling until there is more clarity. 

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“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,” ReMax Canada president Don Kottick said in a release.  

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Affordability continues to be more important than ever for buyers, with 57 per cent of survey respondents listing it as their must-have, up from 46 per cent in 2024 and 43 per cent in 2023. 

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But depending on where Canadians are looking to buy, affordability might be elusive. Out of 23 markets, Simcoe County, Ont., had the highest average price at just over $2 million in the first quarter of 2025, followed by Whistler, B.C. ($1,916,126), Banff and Canmore, Alta. ($1,325,000) and Prince Edward County, Ont. ($1,199,409). 

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The lowest average prices were found in South Shore, N.S. ($116,875), followed by Newfoundland and Labrador ($198,710), Northern Nova Scotia ($406,243) and Northwestern Ontario ($443,400).  

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Average prices in Edmonton Lakes, Alta., had the biggest year-over-year increase at 43.6 per cent, while Grand Bend, Ont., had the largest decline at 20.3 per cent. 

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While 34 per cent of Canadians consider a recreational property to be a good investment, a separate survey of ReMax brokers and agents suggests investors make up only 12.5 per cent of recreational market activity.

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Families were the primary drivers of recreational transactions in 83 per cent of regions, followed by retirees at 70 per cent. That marks a change from 2018, when retirees were the main buyers in 91 per cent of markets.

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“The shift can be attributed to lower interest rates, lower property prices and lifestyle changes sparking buying activity among the younger population,” the report said.  

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Younger generations of would-be cottage buyers could also benefit from the transfer of generational wealth in the coming years. In 2023, the Chartered Professional Accountants of Canada predicted $1 trillion will move from boomers to their generation X and millennial heirs by 2026 in the “largest generational transfer of wealth in Canadian history.” 

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The ReMax report said that 17 per cent of cottage owners who are planning to sell in the next one to two years were influenced to do so due to a lack of interest from next-generation family members in taking over the property. Another 17 per cent plan to put the family cottage on the market as a result of an estate decision.