Staycations are back, so why are Canadian cottage sales slumping?

Staycations are back in style across Canada, with families and city dwellers turning backyard decks and nearby lakes into holiday escapes. After years of international travel restrictions, people are rediscovering local getaways – and cottages are at the heart of this trend. Warm weather, remote work flexibility, and a craving for nature have made nearby retreats more popular than ever. Yet despite this boom, cottage sales are surprisingly falling short.

Rising U.S. tariffs on softwood lumber are feeding into higher construction and renovation costs. Buyers are now hesitant, fearing sticker shock when updating older cottages or building new ones. These higher costs have eroded the appeal of owning a weekend home, especially for middle-class families keeping a tight eye on expenses.

But tariffs aren’t the only issue. Economic uncertainty—fueled by global trade tensions, inflation worries, and fluctuating interest rates—has buyers hitting the pause button. Without a clear sense of longer-term conditions, many have decided to wait for steadier ground before making a big purchase. Even modest price drops aren’t enough to sway cautious buyers.

The impact is uneven across regions. In Ontario, areas like Niagara-on-the-Lake and Peterborough County are reporting flat or declining cottage prices, in part because more listings have come to market. In contrast, spots like Simcoe County and Prince Edward County are holding steady, with constrained inventory helping support prices. Yet overall transaction volumes are down in many cottage zones.

Some buyers are still eager—especially retirees, families splitting costs, or those buying with short-term rental plans—but they’re leaning toward properties that need less work or come turnkey. The combination of cheaper mortgage rates and simpler properties offers peace of mind amid rising renovation bills. Out-of-province purchasers also remain active in regions such as Northwestern Ontario and Sudbury.

Analysts say this slump is likely temporary. Once trade talks stabilize and tariff measures clear up, cottage sales could rebound. The long-term shift toward local travel seems secure, but for now buyers are staying cautious. With staycations here to stay, the bounce-back depends on calm in both global trade and local building markets.