Ontario's Cottage Prices Are Skyrocketing Right Now & The Competition Is Wild

If you're ready to snap up your dream cottage in Ontario, join the club — the competition for real estate in cottage country regions is only heating up.

According to a new report from Royal LePage, the prices of recreational properties in Ontario are rising fast as demand continues to soar during the pandemic.

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Which parts of Ontario are getting more expensive?

The report states that homes in recreational markets all across Canada are costing more money, and Ontario is no exception.

The report notes that Muskoka was particularly impacted by the “migration out of the GTA,” as were many other smaller communities within a reasonable drive of the city.

Royal LePage says the average price of single-family homes in Haliburton County, Rideau Lakes, Southern Georgian Bay and the North Channel rose the most in 2020.

Muskoka, Kawartha Lake and Niagara also saw price increases of around 20% in single-family homes in 2020.

Why are Ontario cottages costing more money?

Royal LePage Lakes of Muskoka broker John O'Rourke says "a scarcity of inventory added more fuel to the fire, creating competition in the market unlike anything we've seen before."

Around 56% of recreational property buyers in Ontario are making four to ten offers on average, the report says, and 27% of agents representing sellers are getting more than ten offers per listing.

Almost half of Ontarians say that the pandemic has inspired them to move to a less-dense area, according to a Royal LePage demographic survey, and nearly 70% say that being able to work from home is "important."

"Since the onset of the pandemic, supply cannot keep up with the increasing demand," says Chris Winney, broker with Royal LePage ProAlliance Realty.

"As no one has been able to travel for the last year, buyers of all ages and stages of life are looking for recreational properties that offer the flexibility, and internet quality, that will allow them to work remotely if they choose, but also have rental potential."

How much more money are cottages going to cost?

The report says that the average price of a house in Ontario's cottage country is going to rise 17% in 2021 to $547,207.

That’s up from $467,698 in 2020, which itself was 19.4% higher than prices in 2019. 

Waterfront homes cost a little bit extra — in 2020, the aggregate price of a home on the water increased by 21.5% to $673,400.