EN - Real Estate

Ontario Cottages Are Getting Even More Expensive As People Flee Cities For Remote Work

Home buyers now want to know how good their internet connection is going to be.

Working in 2020 looks a lot different than it used to, and the prices of Ontario's cottages are looking quite different as a result.

A new report from the real estate company Royal LePage says that almost 75% of the "recreational property markets" they surveyed in Ontario have had an increase in the number of people purchasing permanent homes in the area.

The company says the change was driven in part by a new-found ability to work remotely.

But those same houses and cottages cost 20% more on aggregate in 2020 than they did last year.

Editor's Choice: Restrictions On Non-Essential Travel Into Canada Have Now Been Extended Until 2021

$450,127 Aggregate price of a single-family home in Ontario's recreational regions

The whole of Canada is following the trend of people leaving cities and living in areas that are traditionally used for holiday homes, too.

Over 50% of the country's recreational property markets report an increase in people buying permanent residences, and the Canada-wide cost of a single-family home in a recreational area has increased 11.5% over the past year.

"The most common question used to be ‘is the property West-facing?’ Now my clients’ biggest concern is internet quality," said Bob Clarke, a Muskoka-based real estate agent, in the release.

Clarke also says that more retirees are buying larger Muskoka properties, partly so that their kids — who might have lost their job or might be working remotely — can live with them. 

And it doesn't look like these cottages are going to get any cheaper — Royal LePage predicts that prices are going to go up by 10% in 2021.