Ontario Cottage Prices in 2025: Where They're Rising, Falling, and Still Affordable • Over Here Toronto

Buying a cottage in Ontario once felt like a dream reserved for the wealthy—but with economic uncertainty in the air, the market is shifting. Ontario cottage prices are now all over the map, with some areas seeing significant price drops, while others continue to climb. A new report from Royal LePage and additional insights from Re/Max Canada help paint a clearer picture of what buyers and sellers can expect in 2025.

What’s Driving the Cottage Market Right Now?

According to Royal LePage’s latest Cottage and Cabin Trends Report, multiple factors are shaping this year’s market:

Rising living costs and fears of a recession
The impact of the Canada-U.S. trade war
Stricter short-term rental regulations
Interest rate fluctuations and overall buyer hesitation

While the desire for a cottage lifestyle remains strong, many are waiting for more economic stability before making a move.

Where Ontario Cottage Prices Are Highest

If you’re dreaming of luxury lakefront living, these regions are still commanding hefty price tags:

Simcoe County: Highest in the province at $2,095,000, up 4.5% from last year despite fewer sales.
Prince Edward County: Average of $1,199,409, up a steep 20.1% year-over-year.
Orillia: Prices dropped 16.6% to $1,031,882, but remain high.
Niagara-on-the-Lake: Averaging $925,000, down 5.6%.

Even with these fluctuations, the demand remains relatively strong—especially in places seen as investment hotspots or with short travel times from major cities.

Where Ontario Cottages Are Still Affordable

On the flip side, there are pockets of affordability—especially if you’re willing to drive a bit farther:

Northwestern Ontario: Cheapest in the province at $443,400, down 5.2%.
Greater Sudbury: Up 12.8% year-over-year to $494,632, still under the half-million mark.
Grand Bend: Prices plunged 20.3% to $688,840.
Peterborough County (Kawartha Lakes): Average price now sits at $711,000, down 2.2%.

In these regions, sales activity has dropped sharply, suggesting more room for negotiation—especially for cash-ready buyers.

Forecast: More Fluctuations Ahead

Royal LePage expects prices to fall even further in:

Grand Bend: Forecasted -8% drop by end of 2025
Niagara-on-the-Lake: Predicted -6%
Muskoka: Estimated -4.5%

While buyers may find opportunities in these areas, experts caution that ongoing economic shifts could still reshape these predictions.

Buyer Sentiment: Hesitant but Hopeful

Surveys show that:

57% of Canadians say affordability is their top priority when buying a cottage
19% of current cottage owners are considering selling
34% of buyers still view recreational properties as a good long-term investment

However, many are pausing their plans due to tariffs, inflation, and high interest rates.

Will U.S. Trade Tensions Push Canadians to Buy Local?

Yes—possibly. With Canadians pulling back from buying vacation homes in the U.S., interest in domestic cottage markets may rise. Zoocasa notes that destinations like Muskoka could benefit from this shift as buyers prioritize staying local.

“People want second homes—but they’re just waiting for the right moment,” said Carrie Lysenko, CEO of Zoocasa.

Bottom Line

Ontario cottage prices are currently a mixed bag, with trends that vary dramatically by region. For budget-conscious buyers, Northern Ontario and parts of Central Ontario offer the most value. But if you’re looking in luxury markets like Simcoe or Prince Edward County, prepare to pay a premium.

As always, timing matters. Keep a close eye on economic signals, interest rates, and regional inventory if you’re planning to buy or sell in 2025.

Would you consider buying a cottage in today’s economy, or are you holding off? Let us know in the comments.

More…

Ontario Cottage Prices in 2025: Where They’re Rising, Falling, and Still Affordable