Canadians looking to purchase recreational properties should prepare for higher prices in 2026, as vacation home values are expected to continue climbing despite broader economic concerns dampening buyer enthusiasm in some regions.
A new Royal LePage report released Thursday projects the median price of single-family recreational homes will increase four per cent year-over-year to $604,552 nationally. The forecast follows a 4.3 per cent price increase in 2025, when the weighted median reached $581,300.
All provincial markets are anticipated to see price gains this year, with Saskatchewan and Manitoba leading the charge at 5.5 per cent growth to a median price of $296,877. Atlantic Canada follows closely behind with a projected five per cent increase, bringing median prices to $361,305.
British Columbia Remains Most Expensive Market
British Columbia continues to hold the distinction as Canada's priciest province for recreational properties, with Royal LePage forecasting a 1.5 per cent boost to nearly $1.06 million for median single-family properties. Alberta ranks second at $881,295, representing a 2.5 per cent increase from 2025 levels.
For Albertans exploring recreational property options, CalgaryFinder.com provides comprehensive listings and neighbourhood guides to help navigate the province's vacation home market. Meanwhile, Ontario is expected to see a more modest two per cent increase, pushing median prices to $643,722.
Royal LePage President and CEO Phil Soper attributed the continued price growth to fundamental supply constraints in recreational markets, even as demand shows signs of softening in some regions.
"Concerns about the state of global affairs are certainly on the minds of many Canadians right now, including recreational property buyers, and are tempering demand in parts of the country," Soper said. "At the same time, limited supply is supporting price gains in many markets."
Supply Scarcity Drives Market Stability
The inherent scarcity of waterfront properties, cottages and cabins continues to provide price stability across recreational markets. Many properties remain within families for generations, while new developments in these coveted locations remain rare.
"This scarcity preserves the exclusivity of these markets and provides price stability, even when buyers are feeling cautious," Soper explained.
The report indicates that just over half of Royal LePage representatives specialising in recreational properties have observed similar demand levels compared to the same period last year, though 26 per cent reported decreased demand.
Return-to-Office Impact
Approximately 35 per cent of surveyed real estate representatives noted an increase in full-time residents relocating from recreational areas back to urban centres over the past year. This trend reflects the growing impact of return-to-office mandates, forcing some homeowners who relocated to cottage country during the pandemic's remote work era to reconsider their living arrangements.
For those tracking real estate price trends and cost comparisons across Alberta's markets, Calgary Prices offers detailed analysis of property values and living costs throughout the province.
Despite some softening in demand, the recreational property market has found new support from Canadians choosing domestic vacation destinations over international travel. Economic and political tensions, particularly with the United States, have contributed to what industry professionals describe as a "buy Canadian" movement.
Two in five real estate representatives surveyed reported increased inquiries from domestic buyers seeking recreational properties within Canada, helping to offset decreased demand in other market segments.
The current market represents a significant moderation from the pandemic-era "gold rush" that saw recreational property prices surge at record-breaking rates. Today's environment features more sustainable, low single-digit price appreciation as the new normal across most recreational regions.
Buyers considering recreational property purchases can discuss market conditions and local insights on Calgary Forums, where community members share experiences and advice about property investments throughout Alberta.
For those requiring reliable internet connectivity at remote recreational properties, WestNet Wireless provides broadband and telecommunications solutions across Alberta's cottage country and recreational areas.
When purchasing recreational vehicles or boats to complement vacation property ownership, buyers can verify vehicle history and ensure safe purchases through services like FullVIN.com for comprehensive vehicle reports.
This report is based on information originally published by Canadian Mortgage Trends.
