There’s been a sharp increase in the influence of retirees and Baby Boomers on Canada’s recreational homes market.
A survey of brokers/agents by RE/MAX shows that the share of markets where older buyers are dominating recreational sales – including Prince Edward County and Comox Valley - has increased from 55% in 2017 to 91% in 2018.
The rising values of their primary homes is fuelling the buying power of older Canadians, especially for those in Vancouver and the GTA. But rather than buying for recreational use, many are focusing on where to retire.
“Last year, we found that Baby Boomers and retirees were increasingly selling their homes in urban centres like Toronto and Vancouver,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “It’s clear that many put the equity they received from those sales into the purchase of a recreational property with the intention to retire in comfort and away from the city.”
Recreational homes a good investment
A third of respondents to the RE/MAX survey say they own or want to own recreational property as an investment.
It found that in some areas in Toronto there are many owners of recreational properties who rent their primary residence in the city, while renting out their recreational home for most of the year. They are renting where they live but buying where they play.
Then there are those who have bought a recreational property with others.
“Many Canadians want to live out the ‘Canadian Dream’ and spend time at the cottage or cabin but today, that doesn’t necessarily mean owning a recreational property outright,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX INTEGRA Ontario-Atlantic Canada Region. “Many are choosing to rent recreational properties, often by pooling resources with friends and family, which speaks to recreational properties still being in high demand.”