New RLP Recreational Property Report

Despite the economic downturn, many Canadians are still dreaming of owning a recreational property, both as a long-term investment and to enjoy with family and friends. Canadians are willing to make sacrifices to own a cottage, and more want to use their cottage, cabin or chalet year-round as a recreational property and, for some, as their primary residence, according to the 2009 Royal LePage Recreational Property Report.

The 2009 Royal LePage Recreational Property Report comprises a nationwide survey of Canadian attitudes towards recreational property* ownership, coupled with a market analysis of recreational property prices, trends and activity in selected leisure markets across the country.

“The survey showed the dream of owning a get-away property on the water to escape the pressures of city life and to relax with family and friends, is still alive and well across the country,” said Phil Soper, President and Chief Executive of Royal LePage Real Estate Services. “Beyond the obvious lifestyle benefits however, our research demonstrates Canadians see recreational property as a smart and safe long term investment.”

The survey found that 64 per cent of Canadians view cottage ownership as a sound investment. To pursue their dream of buying a recreational property, 55 per cent of Canadians would be willing to make compromises with regards to their financial or lifestyle choices, such as purchasing a property with family and friends, renting out their cottage, making a cottage their primary residence, buying a fixer-upper, or moving into a smaller principal home in the city.

“While Canadians build their own personal equity through cottage ownership, they also contribute to the economy of the small leisure communities they vacation in by shopping at the local stores and through activities such as boating and golfing,” continued Soper.

Following a reduction in sales in the latter half of 2008 and over the winter, the recreational market is now showing signs of renewed interest and increased activity. Consumer concern about the recession and increasing inventories have eased demand and helped alleviate the chronic supply shortage that has characterized the recreational real estate market in recent years. Improved affordability is keeping many markets busy. So far this year the busiest areas have been those offering more modestly priced or entry-level properties, such as the Kawarthas in Ontario.

Full 2009 Royal LePage Recreational Property Report (.PDF)