The generation is seizing the opportunity to purchase a resilient asset to protect and grow the family fortune
Canada’s residential real estate market is known for its overall resilience, and one key component of this is the demand for recreational homes.
With the $1-trillion wealth transfer from Baby Boomers to Gen X now underway – and with home prices more affordable – those in the pre-retirement and early-retirement years are seizing the opportunity, as previous generations have done in their later years.
A new report from RE/MAX Canada reveals that in 91% of regions surveyed, brokers report that Gen X is driving demand for recreational property.
And across age groups, around half of recreational homeowners, or prospective owners, say that passing down the asset to family is a key motivator to buying.
Succession planning means that 56% of respondents have or plan to put their property in their beneficiary’s name while they are alive.
“It’s interesting to see Gen X gaining more of a foothold in recreational markets across Canada. Demand, coupled with the desire to own and keep these properties in the family, may further impact already low inventory levels in this segment of the market,” says Christopher Alexander, President, RE/MAX Canada. “When it comes to succession planning, recreational properties are always a good addition to any real estate portfolio, especially given the long-term ROI that they typically yield, making them an excellent opportunity for inheritance aspirations as well.”
Balanced market
RE/MAX Canada’s 2023 Cottage Trends Report reveals that the recreational market frenzy seen in 2022 has eased to more balanced conditions.
However, brokers expect prices to rise with the temperature and for average residential sale prices to rise by 0.9% this year.
“As the lines between recreational and residential properties become increasingly blurred in a trend that emerged during the pandemic, quality of life has become even more important,” says Elton Ash, Executive Vice President, RE/MAX Canada. “As the warmer weather approaches, and economic conditions begin to stabilize, buyer confidence is returning to recreational markets.”
