Can't Sell, Can't Rent, Can't Keep It, Ontario Cottage Market Collapsing
In this week's episode, we tackle your reactions to our recent cottage market video. Viewers across Ontario weighed in on everything from rising prices and capital gains to Airbnb struggles, operational costs, and the question everyone is asking: are cottages a lifestyle dream or a financial burden waiting to happen?
Whether you already own a cottage, plan to buy one, or just enjoy watching the market unfold, this breakdown gives you honest, real-world insight into what is actually happening in cottage country.
Reading Your Comments: The Good, Bad, and Indifferent
A few weeks back, we put out a video about cottage ownership in Ontario, whether it makes sense to buy, what the market looks like, and who cottages are really for. The response was overwhelming, so we thought it'd be interesting to sit down and go through some of your comments. Let's dive in.
The $645,000 Cottage Sale Success Story
One of the first comments we got was from someone whose sister sold her cottage of 15 years this past March. The deal closed in 30 days, and she grossed $645,000. She had originally listed it at $699,000, but since then, the market seems to have gone nowhere.
Congratulations to her on making that sale! While the comment didn't mention what she originally paid, owning for 15 years and selling for $645,000 is significant. Of course, she'll have to pay capital gains on that amount, but that's still a positive outcome. As we like to say, we're okay with paying capital gains on $600,000.
"Prices Are Too High, It's All for Rich People Now"
Another comment came from someone who lives in Canada during the summer: "The prices are way too high. It's all for rich people now."
Here's the reality: any secondary residence is generally going to be for people with a bit more disposable income. That's just the nature of owning a second property. We wouldn't necessarily say "rich people," though. There are more affordable cottage options out there. They're usually the rustic "cabin in the woods" type that might need some work. But if you're looking at waterfront properties with modern amenities, yes, those are going to be luxury purchases.
It's also worth noting that many cottage properties have been passed down generation to generation as family homesteads. Those shouldn't be painted with the same brush as wealthy buyers snapping up new properties.
The True Cost of Cottage Ownership
Operational Costs Can Break Your Budget
One commenter was refreshingly honest: "Cottage life is not for us. The extra operational costs would seriously affect our budget. Could not do it, and we're not looking to solve this problem for ourselves. If people can, God bless and we wish you much happiness."
They went on to explain they know people with partial ownership in a cottage, and they get invited up. They bring lots of food, pay it forward, and everyone benefits. One person even mentioned hearing about a guy who works for free on people's cottages in exchange for invitations. He brings a bottle of wine and a fun story about it.
The takeaway here is simple: this person identified that the extra operational costs of cottage ownership just don't make sense for their budget. It's like owning a pool. You don't want to own one yourself, but you make sure your neighbour has one so you can use it whenever you want.
The Real Numbers: What Cottage Ownership Actually Costs
Here's a reality check from one of our commenters who bought a cottage in the Kawarthas 22 years ago for $490,000 and sold it today for $1 million. Sounds like a great investment, right?
Not so fast. The average cost to keep a modest cottage, factoring in taxes and maintenance, is about $25,000 per year. Do the math: $25,000 x 22 years = $550,000 in operating costs alone. So while he sold for a million, he's essentially breaking even when you factor in what he spent keeping it running.
Now, that doesn't account for all the great times and memories created at the cottage, which is the real value for most people. But from a pure financial investment standpoint? Cottages are not money-makers.
Did Cottage Prices Really Double During COVID?
One comment claimed that "prices of cottages went up 100% during COVID and need to come back down 50% before anyone starts to buy. I've lived in cottage country all my life and it's insane to see some prices. Cottages should be well below the cost of your home, not the same or more."
We'd challenge the claim that prices doubled during that specific time period. Yes, cottage prices have doubled over longer timelines, just like every property in Barrie has appreciated significantly over the years. But specifically during COVID? That's an exaggeration.
Why Some Cottages Cost More Than Primary Homes
Here's the thing: cottages are still houses. If you're looking at a 3,000-square-foot waterfront property with boathouses, docks, and decks, it's going to cost more than a modest primary residence. Many cottages are three-season properties rather than four, but they're still full structures that should be at least somewhat comparable in price to regular homes.
If you want something less expensive, there are absolutely more affordable cottage options out there. But you're getting less, smaller size, fewer amenities, possibly more remote locations.
What's Happening in Specific Cottage Markets?
Bancroft: High Prices, Few Services
One commenter mentioned that "prices around Bancroft are crazy. Who has $750,000 plus? Very few services."
That's a fair point. When you go to cottage country, you're not getting city water or city sewer. You're on well and septic. Internet can be spotty at best. But here's the good news: prices have softened in Bancroft. Properties that were $750,000 before are now closer to $600,000 or even less.
Also, you're not going to cottages for the services. If anything, you expect to be away from urban amenities when you're at a cottage. That's part of the appeal for many people.
Muskoka: Can't Sell Without Huge Drops?
Another comment stated: "No one can sell their places in Muskoka area without a huge drop. Stop sugar coating it."
We don't remember sugar coating anything in our original video, but let's address this. Yes, some Muskoka properties are taking longer to sell and may require price adjustments. But remember the earlier comment about the sister who sold for $645,000? People are selling, it just might not happen overnight.
You're not going to flip a cottage for quick profit. That's never been the purpose of cottage ownership, and it never will be. The intent of buying a cottage should not be to make money on it. If you bought three years ago and you're trying to sell now, you're probably not turning a profit.
The Lifestyle vs. Investment Debate
Cottages Are a Want, Not a Need
One insightful comment pointed out: "Cottages are a want, not a need. People first need houses and lifestyles they can afford."
This is absolutely true. Cottage ownership is a luxury purchase. It's about lifestyle, family time, and creating memories, not about building wealth or securing your financial future.
Has Cottage Ownership Become Too Commercialised?
An interesting observation came from someone who said: "For some reason, buying a place to enjoy has become a capital investment and not a family or lifestyle investment. Why is that?"
This is likely referring to the rise of investors buying cottage properties specifically to rent them out as luxury Airbnbs. Back in the day, cottage country was about groups of families buying nearby properties, knowing each other, and spending weekends together. Now there's a commercial market for short-term rentals.
The simple answer? Money. There's a market for people who want to experience cottage life occasionally without owning property. Airbnbs fill that gap, and because there's money in it, investors have jumped in.
How Airbnb Changed Cottage Country
The Airbnb phenomenon has fundamentally reshaped cottage demand and pricing. People who want to go to a cottage once or twice a year but don't want the ownership burden can now rent luxury properties. This created an investor market that didn't exist before, which has driven up prices in certain areas while also creating more rental supply.
The Traffic and Labour Reality
One brutally honest comment said: "This is why I never accept invitations to anybody's cottage. My idea of a relaxing weekend is not doing free labour for you after sitting for hours in traffic."
Fair point. We can't disagree. The Highway 400 corridor during cottage season is absolutely brutal. And yes, many cottage weekends do involve some amount of work, whether it's maintenance, yard work, or projects.
Interestingly, we've heard the opposite complaint from cottage owners: people come up, drink your beer, eat your food, and don't do anything to help. So it's probably a combination of both experiences depending on the situation.
The Dramatic Predictions
We got some interesting takes. One person declared: "Cottages will be worth pennies by the end of 2026."
We're always huge fans of people who make wildly negative predictions with zero evidence. You can say whatever you want, freedom of speech and all, but you're just wrong.
We'd be curious to know: do the people making these negative comments actually own cottages, or do they want one and can't afford it? What's driving this negativity? Why specifically will cottages be worthless at the end of next year? No one can seem to answer that.
The Bottom Line: Who Cottages Are Actually For
We can sum this entire discussion up with one comment we received: "I drive 10 hours to sit on a dock."
There's your answer. Some people absolutely love their cottages and will drive any distance to get there just to sit on the dock and enjoy the peace. Those who love cottage life, truly love it. Those who don't think cottages are a royal pain and that nobody should have them.
Cottage ownership is deeply personal. It's not for everyone, and it shouldn't be. If the operational costs, traffic, maintenance, and financial commitment don't align with your lifestyle and budget, that's perfectly fine. If you can afford it and it brings you joy, it's worth every penny.
The Ontario cottage market isn't collapsing, it's adjusting. Prices have softened from their COVID peaks, properties are taking longer to sell, and some areas are seeing price reductions. But cottages aren't becoming worthless, and people who truly value the lifestyle will continue to buy them.
Just don't expect to get rich off your cottage. That's not what they're for.
Want to dive deeper into the cottage market debate? Watch our full video where we break down viewer comments, analyse the real costs of ownership, and discuss whether cottages are still a good purchase in 2025.
