RLP forecasts further double-digit price growth in 2022 following a 27% jump in 2021
While buying a principal residence remains a staple investment for millions of Canadians, recreational homes are also delivering strong returns.
Last year, the aggregate price of a single-family home in Canada's recreational property regions increased 27% year-over-year to $567,000, a single-family waterfront home increased 22% to $976,000, and a condominium rose 15% to $374,000.
The figures are from the Royal LePage Recreational Property Report, which also forecasts further price growth in 2022; an aggregate 13% to $640,710, as demand continues to outpace supply.
"The factors challenging Canada's residential real estate market – chronic low supply and growing demand – are amplified in the recreational property segment," said Phil Soper, president and CEO, Royal LePage. "Demand for recreational properties continues to vastly outstrip inventory in many cottage regions across the country. Waterfront and mountain-top locations near cities are limited by nature, even in a vast land like Canada, forcing buyers into multiple-offer scenarios.”
Single-family recreational homes in Atlantic Canada and Quebec are forecast to see the highest price appreciation in the country this year, at 15%, while prices in Ontario and British Columbia are set to gain 13% and 12.0% respectively.
Heading for the hills
While many buyers are focused on family vacations or rental income, older buyers are also in the market as they seek retirement in desirable locations.
"In addition to increased interest from young families, there remains a strong demand for recreational properties from buyers nearing retirement," said Soper. "With remote work options, Canadians are transitioning into their final working years while getting to know their new community."
An RLP survey last year revealed that 35% of Canadian boomers were considering buying a principal residence in the following 5 years, with more than half considering buying in rural or recreational regions.
