It looks like cottage country homes will spike in value this year

Cottage country prices have soared since the pandemic, and now a new report from Royal LePage predicts another jump as inventory remains scarce. The real estate giant announced today its prediction that the median national price for cottages and vacation homes will increase four per cent in 2026, rising from $581,300 to $604,552. Prices increased 4.3 per cent in 2025 compared with the year before.

Bucking historical trends, Ontario in particular is forecasted for a more modest increase of two per cent, with the median price here hitting $643,722.

Even though current global conflicts have rendered markets volatile, “limited supply domestically is supporting price gains,” Royal LePage president and CEO Phil Soper said in a statement. “New developments in these regions remain relatively rare, and many properties are tightly held by families for generations. This scarcity provides price stability, even when buyers are feeling cautious.”

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In Muskoka, movement has largely been driven by wealthy buyers shopping in the “upper price tiers” for personal use as opposed to investment properties, according to Royal LePage regional expert John O’Rourke. Current demand for the area remains similar to last year, with properties sitting cold slightly longer than historical averages.

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“Canadians are continuing to swap traditional cross-border getaways for at-home alternatives, trading Florida oceanfronts for Ontario lakes,” Soper continued in his release. Royal LePage’s research shows that 54 per cent of Canadians who own American real estate plan to sell, with many intending to invest their revenue in local properties, including cottages.