Ontario’s cottage country is off to a sluggish start to the spring market as the majority of properties sit for longer this year compared to last, with activity expected to remain dampened.
However, winterized cottages remain the most sought after.
Despite lower interest rates, demand for recreational homes has been softer than usual as the spring market kicks off, according to a Royal LePage report published Wednesday.
“The Muskoka region has seen a gradual uptick in its inventory levels, which is good news for buyers who are looking for a specific type of recreational property and want more selection to choose from,” said John O’Rourke, broker for Royal LePage Lakes of Muskoka.
“However, neither increased supply levels nor lower interest rates have translated into a significant boost in demand just yet, leading to higher-than-usual days on market for this time of year.”
According to the report, the weighted median price of a single-family home in Ontario’s recreational property market in 2024 decreased 1.5 per cent year over year to $640,700. During the same period, the weighted median price of a standard condominium decreased 5.7 per cent to $468,900.
In the Rideau Lakes region, demand has also been softer than usual for this time of year, as the political climate has many buyers hesitant to make a move, said Pauline Aunger, broker of record for Royal LePage Advantage Real Estate in Rideau Lakes. However, comparatively lower inventory levels in the region have helped stabilize prices, she added.
In Rideau Lakes, the average days on market in 2025 so far is 61, up from 49 during the same period last year.
“Our clientele remains a mix of families looking for weekend cottages and retirees seeking waterfront living with convenient access to amenities,” she said.
Another factor dampening activity are restrictions on short-term rentals.
When cottage owners aren’t using their seasonal retreat, many choose to rent it out to help offset operational costs. However, growing restrictions on short-term rentals, have made this difficult in some regions, the report argues.
During the pandemic when interest rates were low, piles of buyers sought cottages with many renting them out to make additional income. To address the issue, over the last couple of years dozens of municipalities and townships in Ontario have been adopting short-term rental bylaws to help with housing affordability, as well as noise and safety concerns.
“Strict short-term rental regulations continue to deter investors and those hoping to lease their properties during the off-season. As a result, most buyers in today’s market are end-users purchasing primarily for personal vacation use,” O’Rourke said.
“Winterized cottages with strong internet connectivity remain the most in-demand properties, offering the flexibility for remote work.”
Phil Soper, Royal LePage president and CEO, warns that if policies aimed at “severely” restricting the recreational market persist it will discourage buyers and hurt local economies as seasonal tourism is a contributor to employment and boosts small businesses.
Nationally, the recreational property market shows signs of stronger growth as the median price of a single-family home is forecast to increase by four per cent in 2025 to $652,808 compared to 2024 — in Ontario the price forecast is one per cent.
Nationally, in 2024 the weighted median price of a single-family home in Canada’s recreational property regions increased 2.3 per cent year over year to $627,700. However, single-family waterfront properties decreased 3.6 per cent year over year to $1,063,400, and condos remained flat rising a modest 0.2 per cent to $431,700.
Atlantic Canada saw the biggest year-over-year price appreciation in 2024, rising 12.6 per cent and boosting the national price growth.
For Ontario in the short-term, ongoing tariffs and broader economic uncertainty are expected to keep market activity relatively flat this spring, said O’Rourke.
