Cottage Country Slowdown? What to Know Before Buying a Vacation Home

A lakefront property or country home is a dream that many Canadians share. Whether you’re looking for a weekend getaway, an investment property, or an eventual retirement location, there are numerous factors to consider. Here’s what you should know before you invest in cottage real estate.

Post-Pandemic Market Slowdown

Remember the pandemic? Who can forget? During that time, cottage real estate was booming; everyone was looking to get out of the city and work from their lakefront property. Now that things have gotten back to (the new) normal, the number of cottages for sale is back up, and prices are steadier. Add decreases to interest rates, and now could be the perfect time for people buying vacation homes in Canada.

What’s Behind Cottage Real Estate Trends?

Major factors affecting cottage real estate in Canada are:

Easing Interest Rates

Lower interest rates are making vacation homes in Canada more affordable for many.

More Inventory and Less Competition

Active listings for cottage real estate jumped in 2025 over 2024, but there are fewer potential buyers. This means buyers don’t have to jump on opportunities as was the case during the pandemic. Buyers can take their time and find a property that meets their budget and their needs.

Return to the Office

Buyers who were able to work from home drove the cottage real estate frenzy during the pandemic, but those same workers are now being asked to return to the office. The properties they bought are now being offered for sale.

Transfer of Generational Wealth

A large portion of baby boomer wealth is now being passed on to younger generations. This is bringing vacation homes in Canada within reach for many.

Regional Markets in Cottage Real Estate

Canada’s most popular regions for cottage real estate have experienced varying inventory levels and pricing changes.

Ontario’s Cottage Real Estate

Ontario features some of the most prized cottage real estate in the country. Regions include:

• Muskoka, the crown jewel of the lakefront property market, has seen sales drop, and inventory has surged.
• Kawartha Lakes and Peterborough, which offer more affordable options than Muskoka, with cottage prices in the $450,000 to $600,000 range.
• Georgian Bay, where listings are up, but average cottage real estate prices are also rising.
• Northern Ontario, where cottage prices have dropped slightly and where you can find some of the most pristine wilderness in the province.

Atlantic Canada’s Cottages for Sale

The East Coast is forecast to see price gains of around 8% in 2025, but prices overall are more affordable than in many regions of Canada. Even for buyers who only plan to use their cottage a few times a year, buying cottage real estate in Atlantic Canada can make sense, especially if they rent it out when they’re not using it.

Western Canada’s Cottage Real Estate

The market varies widely across Western Canada, from BC’s coastal retreats to Alberta’s mountain chalets and Manitoba’s many lakeside properties. Proximity to major cities plays a big role in costs, but increased inventory means that buyers have more options and more negotiating room.

Quebec’s Cottages for Sale

Quebec’s cottage real estate market is often more affordable than Ontario’s, while providing access to lakes, forests, ski regions, and even a fjord! Add in the opportunities for exposure to different cultural elements and access to fresh arts scenes, and Quebec becomes an attractive option.

Features to Look for in Cottages for Sale

Cottage real estate is meant for enjoyment, but it’s also an investment. The following features help a vacation property retain its value over time:

• Waterfront access, whether the water is a lake, river, or the ocean. If the property is not on the water, nearby access and boat launches are important features.
• Year-round road access, especially for all-season properties. For winter use, ensure that there are snow-plowing services available.
• Privacy and restrictions on further building in the area.
• Modern amenities such as reliable plumbing, a good water filtration system, and internet access.
• Nearby towns for replenishing supplies.
• Rental interest for income potential.
• Local regulations, such as fishing or boating restrictions, which help ensure quiet and lower traffic.

Costs to Consider When Buying

Cottage real estate comes with some unique costs for buyers:

• Property taxes vary widely from region to region and can be higher for a lakefront property or other water frontage.
• Insurance costs can differ due to seasonal vacancies, water damage, septic system coverage, boat and dock insurance, and rental-specific insurance.
• Road maintenance and plowing costs if the access road is privately owned.
• Year-round maintenance, even when the cottage is not in use.

Before you buy, get estimates of these costs from the seller or from a real estate agent who knows the area well.

Strategies for Buyers

Some strategies for buying a cottage are the same as for any other property, but keep these in mind:

Do Your Research

Learn about the area, including seasonal access issues, local rules around water and land use, construction limitations, environmental regulations, and access to amenities such as health care facilities and shopping. An experienced real estate agent can help you with many of these questions.

Don’t Skip the Home Inspection

Cottage real estate can come with issues that city homes don’t, such as well and septic system problems, flood risks, dock condition, and shoreline erosion. Work with a home inspector who understands these cottage-specific inspection needs.

Keep Resale Value in Mind

Although you may plan to keep the cottage real estate long term, things can change unexpectedly. Invest in a property that you’ll be able to sell if you need to.

Check the Rental Market and Regulations

If you plan to rent the property out, check to be sure that the demand is there, and what features are desirable in a vacation rental. Ensure that short-term rentals are permitted in the area.

Should You Buy a Vacation Home?

In many regions of Canada, now is a great time to invest in cottage real estate. With a glut of cottages for sale, dropping interest rates, an active rental market, and more families looking to vacation in Canada, the opportunities are outstanding.

Do your research before diving in, and find a real estate agent with deep knowledge of the area where you plan to buy. Happy cottage hunting!