Residential Market Commentary - Warmer Weather Could Heat Up the Cottage Market

The May long weekend is behind us marking the unofficial start of summer in much of the country. As the days get longer and, hopefully, sunnier and warmer there are signs that the recreational property market could see increasing activity. 

In a theme that echoes from the home-price spike during the pandemic, a significant segment of homebuyers are looking at recreational properties as an entry point into the broader housing market. A survey commissioned by Remax Canada suggests that 45% of potential buyers see recreational properties as a viable first step on the housing ladder. 

The survey also indicates traditional, long-term thinking remains a key component in the decision to buy a recreational property, especially among younger Canadians. Fifty-four per cent of respondents, aged 18 to 34, say a recreational property would play at least some role in their vision of a long-term financial plan. Sixty per cent of those who already own a recreational property say it forms part of their long–term wealth strategy. 

Remax notes two significant factors that could open the door to more activity in the recreational market: “return-to-office” mandates and increasing maintenance costs. 

Among current owners, 28% say return-to-office policies have them considering selling, while 14% of non-owners report hesitating to purchase due to return-to-office expectations. Many brokers report that rising maintenance costs are pushing more recreational property owners to sell. At the same time, 40% of those surveyed say they could not afford the maintenance costs if they were to inherit a recreational property. 

- First National LP