Canada’s recreational property market is expected to post another year of modest price growth in 2026, even as economic uncertainty continues to make buyers more cautious. A new forecast from Royal LePage suggests the median price of a single-family recreational home will increase by about four percent this year, following a 4.3 percent rise in 2025 that brought the national median to approximately $581,300.
According to Royal LePage President and CEO Phil Soper, global instability and financial concerns are clearly influencing buyer behaviour. However, limited availability of cottages and seasonal properties across many regions continues to support pricing. Many recreational homes remain within families for generations, and new construction in these areas is relatively rare, creating a supply environment that helps stabilize values even when demand softens.
Industry professionals report that the market is not being driven by surging buyer activity but by a shortage of listings. More than half of agents surveyed said demand levels are similar to last year, while a majority noted that properties are taking longer to sell. This suggests buyers are proceeding more carefully, taking additional time before committing to purchases in a higher-cost borrowing environment.
The outlook for recreational housing contrasts with expectations for Canada’s broader real estate sector. Economists at TD Economics anticipate that national home sales will decline slightly in 2026, with average prices expected to soften under ongoing affordability pressures. Cottage and vacation properties, by comparison, appear to be benefiting from tighter supply and demand driven more by lifestyle preferences than investment speculation.
Changing travel patterns are also playing a role in supporting the cottage market. With geopolitical uncertainty affecting international travel decisions, many Canadians are choosing to spend more leisure time domestically. About 40 percent of real estate professionals surveyed said this “Buy Canadian” mindset has contributed to increased interest in recreational properties within the country. There are also early signs that some Canadians who own vacation homes in the United States are reconsidering those properties and exploring options closer to home.
At the same time, evolving workplace policies are influencing ownership patterns. As employers expand return-to-office expectations, some individuals who relocated permanently to cottages during earlier remote-work periods are shifting back toward urban living. In many cases, those properties are not being sold but are returning to their traditional role as seasonal retreats rather than full-time residences.
Overall, Canada’s recreational housing sector appears to be entering a steadier phase. Price growth remains moderate, sales timelines are lengthening, and buyers are becoming more selective. Even so, persistent supply constraints and demand rooted in lifestyle priorities continue to provide support for the country’s cottage and vacation property markets despite softness elsewhere in the housing landscape.
