A new report by Royal LePage forecasts a 4% increase in recreational property prices across Canada in 2025, reaching a median of $652,808 despite geopolitical tensions and economic uncertainty.
President and CEO Phil Soper notes that demand for recreational properties remains strong but balanced, with supply constraints driving prices higher as new properties struggle to meet demand.
Lower borrowing costs driving interest
Lower interest rates, courtesy of the Bank of Canada’s rate reductions, have spurred buyer interest in recreational properties. Nearly half of Royal LePage Realtors surveyed reported increased demand due to lower borrowing costs.
Soper explains that easing debt burdens are freeing up capacity for second home investments, while trade tensions and a sense of patriotism are encouraging families to stay in Canada.
Short-term rental restrictions impacting buyer interest
Growing restrictions on short-term rentals are dampening buyer interest in recreational rental properties, particularly in Ontario, Quebec, and British Columbia, according to Royal LePage. This trend risks discouraging buyers and affecting local economies.
Regional price outlook
Atlantic Canada and Quebec are expected to see the highest level of appreciation in 2025, with Ontario experiencing a more cautious market. B.C. faces regulatory hurdles impacting its recreational property market, while Alberta remains stable. Manitoba and Saskatchewan anticipate modest price gains.
Despite various challenges, buyers are still drawn to Canada’s recreational communities for staycation options or future legacy properties.
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