Why vacation home prices are rising in Canada—despite a market slowdown

The report released Wednesday by Royal LePage forecasts the median price of a single-family home in Canada’s so-called recreational regions to rise 4% year-over-year to $652,808.

Most and least expensive places to own a vacation home

The national increase reflects expected price boosts in each provincial market, led by an 8% appreciation in Atlantic Canada to a median price of $498,852, and a 7.5% increase in Quebec to $457,198.

Alberta remains the priciest province to own a recreational home, with Royal LePage forecasting a 2% bump in the median price of a single-family property to nearly $1.3 million, followed by B.C. at $951,762—also a 2% increase. Ontario comes in third at an expected median price of $647,107, which would be 1% above 2024.

In the least expensive region, which combines Manitoba and Saskatchewan, the report forecasts the median price to go up 4.5% to $310,052.

Demand for vacation properties in Canada

Royal LePage president and CEO Phil Soper said demand for recreational properties remains strong but balanced after three years of double-digit price growth during and after the pandemic.

He said many families still have a “deep-rooted desire” to own a vacation home and that is unlikely to change, even amid economic uncertainty and geopolitical tensions.

“The pandemic-era scramble for recreational properties, once reminiscent of a modern-day gold rush, has thankfully eased—along with the chaos of bidding wars and thin inventories,” Soper said in a statement.

“While the mainstream market is more sensitive to economic shifts, demand in the recreational segment remains steadfast, even during periods of market hesitation.”