It’s Cottage Season! RE/MAX has a New Recreational Report

As affordability challenges continue to sideline homebuyers in major urban markets, recreational properties are emerging as a viable entry point to homeownership and a key component for long-term financial planning for many Canadians.

According to a recent Leger survey commissioned by REMAX Canada, 45 per cent of prospective Canadian buyers plan to buy a recreational property as an entry point into the broader housing market, while 60 per cent of current recreational property owners say their property forms part of their long‑term wealth strategy. This shift is most pronounced among younger Canadians, with 54 per cent of those aged 18 to 34 planning to include a recreational property in their portfolio, notably higher than the rate of those aged 35 and older (30 per cent).

28% of current recreational property owners are motivated to sell due to return-to-office mandates.

10% of current Canadians are actively searching for a recreational property right now.

Key Trends

Market conditions are helping to support this shift. In an analysis of 21 recreational markets nationwide, REMAX Canada found that more than half are expected to remain buyer’s markets in 2026, and one-third will be balanced. Our market along the Huron County Lake Huron shoreline remains a buyers market. Meanwhile, the national average price is expected to increase 1.5 per cent through the remainder of the year.

"After years of dramatic swings, Canada’s housing market is finding its footing, and that stability is extending into the recreational segment,” adds Don Kottick, RE/MAX CEO. “Prices are stabilizing, inventory is improving, and days on market are returning to more normal levels. Buyers have more choice and time, while sellers are seeing steady demand for well‑priced homes.”

Canada’s recreational real estate market is evolving, and so is the role of short-term rentals (STRs). REMAX Canada’s 2026 Recreational Property Report reveals that, while demand for vacation properties remains strong, the market has shifted away from the rapid growth seen in recent years toward a more balanced, thoughtful environment. Today’s buyers are more strategic, focusing on properties that deliver both lifestyle value and reliable income potential.

What are short-term rental trends in Canada for 2026?

Short-term rentals in Canada are becoming more selective and location-driven. High-demand markets like Canmore and Muskoka remain strong, while buyers are prioritizing turnkey properties and carefully evaluating costs, regulations, and long-term rental potential.

Insights from REMAX brokers and agents across the country point to an emerging trend: success in the short-term rental market now depends on making informed decisions about location, property quality, and long-term use.

Across Canada, buyers are approaching recreational property purchases with greater care and intention. Rather than purchasing purely for lifestyle or speculative gains, many are seeking properties that can serve dual purposes. These homes are increasingly being viewed as both personal retreats and income-generating assets, giving rise to a hybrid ownership model that continues to gain traction.

According to a Leger survey commissioned by REMAX for the report, 39 per cent of Canadians who plan to buy a recreational property in the next one to two years say they are considering it because they see it as a good investment.

39% of Canadians planning to buy a recreational property say it’s a good investment.

REMAX brokers report that buyers strongly prefer turnkey properties, which can be rented out immediately without significant upgrades. At the same time, the surge in remote work that once fueled demand for recreational properties has levelled off. As a result, today’s activity in the market is driven more by long-term lifestyle planning and the enduring appeal of Canada’s tourism destinations than by short-term shifts in where people work.

Ontario Cottage Market Trends

The market for cottages for sale in Ontario has rebalanced, creating opportunities for buyers interested in short-term rentals.

In regions including Simcoe County, Orillia and the Kawartha Lakes, REMAX brokers and agents report that prices have declined from previous highs, and inventory has increased. This has given buyers greater negotiating power and improved affordability, making it easier to enter the market and potentially generate rental income.

However, market conditions are far from uniform across the province. Popular destinations such as Niagara-on-the-Lake and Muskoka continue to see strong demand, supported by tourism and accessibility. In contrast, smaller or more remote areas like North Bay have experienced slower activity. For short-term rental investors, this highlights the importance of choosing locations with consistent visitor appeal. Lake Huron sees short term rentals for the vacationer that wants to enjoy our Lakeside town amenities, beautiful sunsets, less traffic and slower paced atmosphere.

Buyer demographics are also shifting in Ontario. REMAX brokers and agents are reporting increased activity from retirees and urban homeowners transitioning to recreational areas on a full-time basis. As more properties are used as primary residences, the supply of short-term rentals may tighten in some markets. Retiring to Lake Huron and living year round in a waterfront home is becoming very popular among buyers.

At the same time, rising ownership costs—including property taxes, insurance, and maintenance—are becoming an important consideration. These expenses are prompting some owners to reassess the viability of short-term rentals, reinforcing the need for a careful, numbers-driven investment approach.

Market rebalancing, particularly in Ontario, has created new opportunities for buyers who were previously priced out. However, success in the short-term rental space increasingly depends on understanding local regulations, managing costs effectively, and selecting the right property for long-term goals.

The Canadian short-term rental market is no longer driven by rapid expansion or one-size-fits-all strategies. Instead, it is entering a more mature phase, where careful planning and local expertise are essential.

The most successful buyers today are those who take the time to align their investment with their intended use—whether that’s generating income, building equity, or creating a lifestyle asset for years to come.

For those willing to approach the market strategically, short-term rentals remain a compelling opportunity. But in 2026, success is less about timing the market and more about making informed, deliberate choices that reflect both personal goals and regional realities.

For many Ontario buyers—especially retirees- cottage properties now serve as primary homes that support long-term living. For others, they offer a way to blend work and leisure in a single location. Either way, the traditional “summer-only” cottage model is evolving.

A New Type of Buyer Is Entering the Market

As legacy properties change hands, the profile of the typical buyer is also changing.

Today’s recreational property buyers are more diverse and more strategic. Increased activity among retirees who are planning for lifestyle-driven moves, as well as urban buyers looking to escape rising housing costs in cities. First-time recreational buyers are also entering the market, particularly in more affordable regions.

Are Cottage Prices Dropping in Ontario?

Ontario’s recreational real estate market has also undergone a period of correction, creating a more balanced and accessible landscape for buyers.

In several regions—including Simcoe County, Orillia and Kawartha Lakes—REMAX brokers report notable price declines compared to peak levels. At the same time, inventory has increased, and properties are spending more time on the market. These conditions have shifted negotiating power toward buyers, offering greater flexibility and choice.

The Cost of Ownership Is Reshaping Decisions

While demand remains steady, the cost of maintaining a recreational property is playing an increasingly important role in ownership decisions.

Higher property taxes, rising insurance premiums, and ongoing maintenance expenses are prompting some owners to reconsider holding onto their cottages long-term. In many cases, these financial pressures are a key factor behind the increase in listings across Ontario..

The Future of Legacy Properties in Ontario

Looking ahead, the concept of legacy property ownership is not disappearing—it’s being redefined.

The next chapter of Ontario’s recreational real estate market will likely be shaped by continued generational turnover, greater adoption of full-time cottage living, and more financially conscious buyers. At the same time, balanced market conditions are expected to persist, creating a more stable environment for both buyers and sellers.

Ultimately, legacy properties are evolving from purely sentimental assets into multifaceted investments that support lifestyle, financial planning and long-term living.

Generational turnover is increasing supply, as more properties become available to new buyers. This combination of accessibility and flexibility is helping redefine the housing ladder itself.