Canada’s recreational property market in 2025 is experiencing notable shifts influenced by economic trends, demographic changes, and environmental factors. Here are five key insights:
1. Interest Rate Cuts Fuel Market Optimism
The Bank of Canada has implemented four interest rate cuts since mid-2024, reducing the overnight rate to 3.75%. This easing of borrowing costs is expected to invigorate the recreational property market. Royal LePage forecasts a 7.5% increase in the median price of single-family homes in popular ski regions over the next year, reaching approximately $1,019,960 .
2. Demographic Shifts: Younger Buyers Enter the Market
Families and young couples are increasingly driving demand in the recreational property sector. In 2024, 59% of recreational markets across Canada saw heightened activity from these groups, marking a shift from the retiree-dominated landscape of previous years .
3. Policy Changes Impact Investment Strategies
The 2024 federal budget introduced an increase in the capital gains inclusion rate from 50% to 66.7% for annual gains exceeding $250,000, effective June 25, 2024. This change prompted a surge in inquiries from property owners and investors, with 38% of Royal LePage experts reporting increased client concerns
4. Climate Change Influences Property Dynamics
Rising temperatures and extreme weather events are affecting Canada's recreational regions. For instance, Jasper National Park experienced its largest wildfire in a century in mid-2024, destroying over 32,000 hectares of forest and 30% of the town's structures . Additionally, ski resorts are increasingly relying on snow-making technologies due to less predictable snowfall
5. Regional Variations Reflect Diverse Market Conditions
Market trends vary across provinces. In Quebec, recreational property sales have increased year-over-year, while regions in Ontario, Alberta, and British Columbia have seen declines . For example, Mont-Tremblant experienced a 10.8% rise in single-family home prices, reaching a median of $576,000
These developments suggest a dynamic landscape for Canada's recreational property market in 2025, with opportunities and challenges shaped by economic policies, demographic trends, and environmental considerations.