Cottages and cabins in Canada expected to drop in price this year
During the pandemic, a record number of Canadians decided to move out of noisy urban centres to smaller rural towns and suburbs.
But now, it seems the slow pace of rural life just wasn’t for everyone and employment demands have pulled Canadians back into the big cities.
A new report by Royal LePage has found that the recreational real estate rush of the pandemic has now come to an end.
Phil Soper, CEO of Royal LePage, said that in recent years, “with high-speed internet now readily available in many rural markets, families flocked to recreational regions to put extra space between themselves and their neighbours and to take advantage of nature.”
But in 2023, many urban businesses now require employees to be in the office at least a few days a week, and for many, “living in cottage country full-time has lost its romantic shine,” he added.
Prices are expected to soften this year as a result of waning demand. This is excellent news if you are looking into cottages and cabins to escape to the countryside.
Compared to 2022, the aggregate price of a single-family home in a recreational region is expected to decrease by 4.5% this year (to $592,005).
Forecast changes vary between provinces. Quebec is expected to see an 8% decrease in price. Alberta, on the other hand, is the only province predicted to see an increase in aggregate price, which is forecast to go up 0.5%.
Atlantic Canada had been a particular hotspot for remote worker relocation. According to a survey by Royal LePage, demand for recreational properties in the region has now dropped 46% since last year.
Prices, however, are yet to return to pre-pandemic levels.
The national aggregate price of a single-family home in a recreational region remains 32% higher than in 2020. So even with the fall in prices this year, you might still want to weigh your options before you decide to invest in your cozy cottage or cabin fantasy.