The cottage market debate continues to heat up across Ontario. After our recent video sparked hundreds of comments from cottage owners, dreamers, and skeptics, we sat down to address the biggest questions on everyone's mind: Are cottages still a smart investment? What's really happening with cottage prices? And should you buy one?
Cottage Market Reality Check: What Buyers Are Saying
Success Stories Are Still Happening
One viewer shared their sister's recent cottage sale that closed in just 30 days for $645,000. She'd owned the property for 15 years and listed it at $699,000 before accepting the final offer. While she'll pay capital gains tax on the profit, that's still a significant return on a 15-year investment.
The key takeaway? Cottages are still selling, but timing and pricing matter more than ever.
Are Cottages Only for the Wealthy?
A common concern we heard was that "cottage prices are way too high - it's all for rich people now." Here's the reality: any secondary residence requires more financial flexibility than your primary home. That's just the nature of owning multiple properties.
However, there are still more affordable cottage options available across Ontario. These typically include:
- Cabin-style properties that need some work
- Three-season cottages rather than four-season homes
- Properties further from major waterways
- Smaller footprints in less-developed areas
It's also worth noting that many cottage owners inherited family properties passed down through generations. These aren't always new purchases by wealthy buyers - they're generational investments that have stayed in families for decades.
The True Cost of Cottage Ownership
One honest comment really resonated: "Cottage life is not for us. The extra operational costs would seriously affect our budget."
This is the conversation more potential buyers need to have. Cottage ownership comes with significant ongoing costs beyond the purchase price:
- Annual property taxes
- Maintenance and repairs
- Winterization and seasonal upkeep
- Travel costs and time
- Utilities and services
- Dock and waterfront maintenance
Some cottage owners estimate spending $25,000 per year on operational costs alone. One viewer calculated that after owning a cottage in the Kawartha Lakes for 22 years - buying at $490,000 and selling for $1 million - they actually lost money when factoring in annual costs of $25,000 over those 22 years.
The smart approach? Make friends with cottage owners and bring great food and wine when you visit. You get the cottage experience without the financial burden.
Did Cottage Prices Really Double During the Pandemic?
Several comments claimed cottage prices increased 100% during COVID-19. While the cottage market definitely saw significant appreciation, the reality is more nuanced than a straight doubling of prices.
Yes, cottage prices rose substantially between 2020 and 2022. But claiming they doubled across the board simply isn't accurate for most markets. Like any real estate market, some properties saw dramatic increases while others experienced more modest growth.
Cottage Prices vs. Primary Residence Prices
A recurring frustration we heard: "Cottages should be well below the cost of your home, not the same or more."
Here's where expectations need adjustment. When you're looking at a 3,000 square foot property on the water with boat houses, docks, and decks, that cottage might legitimately cost more than your primary residence - especially if you live in a modest home in Barrie or another Ontario city.
Cottages are still houses. They require the same construction standards, infrastructure, and maintenance. A luxury waterfront cottage with modern amenities should cost accordingly.
If you want a cottage that costs significantly less than your primary home, you'll need to adjust your expectations on size, location, amenities, and condition.
What's Happening in Bancroft and Muskoka?
Comments about specific cottage markets revealed interesting trends:
Bancroft Area: Prices have softened from pandemic highs. Properties that were listed at $750,000 are now closer to $600,000 or less. Limited services like municipal water, sewer, and reliable internet remain challenges, but that's expected in rural cottage country.
Muskoka: Despite claims that "no one can sell without a huge drop," the reality is more balanced. Cottages are selling, but sellers need realistic expectations and proper pricing. This isn't a market for quick flips or overnight profits.
The Cottage Experience: Work or Relaxation?
One brutally honest comment: "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."
This highlights a fundamental divide in cottage culture. Some owners complain that guests show up, drink their beer, eat their food, and don't help with anything. Others feel pressured to work on maintenance projects during what should be a relaxing getaway.
The truth probably lies somewhere in the middle. Highway 400 traffic during cottage season is legitimately terrible. And yes, cottage maintenance is never-ending. Whether that's worth it depends entirely on your personal priorities.
Cottages as Lifestyle vs. Investment
One comment struck at the heart of the issue: "For some reason, buying a place to enjoy has become a capital investment and not a family or lifestyle investment."
This is the shift we've seen with the rise of Airbnb and short-term rental cottages. What used to be groups of families sharing private islands and weekend getaways has increasingly become an investment strategy.
The Airbnb market for cottages is strong because many people want the occasional cottage experience without the ownership burden. This has created opportunities for investors, but it's also changed the character of cottage communities.
Should You Buy a Cottage in 2025?
Here's our bottom line after reviewing hundreds of comments:
You should consider buying a cottage if:
- You can comfortably afford both the purchase price and ongoing costs
- You genuinely enjoy cottage activities and lifestyle
- You're willing to deal with travel, maintenance, and seasonal challenges
- You view it as a lifestyle investment, not primarily a financial one
- You'll use it enough to justify the expense
You should probably skip cottage ownership if:
- The operational costs would strain your budget
- You hate traffic and long drives
- You're buying primarily as an investment
- You expect quick appreciation or easy resale
- You'd rather spend vacation time traveling to different destinations
The Reality: Cottages Are Personal
The comment section revealed the fundamental truth about cottage ownership: people who love cottages absolutely love them. They'll drive 10 hours just to sit on their dock. The peace, the family memories, and the escape from city life are priceless.
People who don't enjoy cottage life find them to be expensive burdens with questionable returns.
Neither perspective is wrong. Cottage ownership is deeply personal, and the "right" answer depends entirely on your financial situation, lifestyle preferences, and what brings you joy.
Final Thoughts on the Ontario Cottage Market
The cottage market has definitely cooled from pandemic highs. Prices have come down in many areas, and properties are taking longer to sell. But predictions that cottages "will be worth pennies by the end of 2026" are simply unrealistic.
Quality waterfront properties in desirable locations will always hold value. The market may fluctuate, but well-maintained cottages in established areas aren't becoming worthless.
If you're considering cottage ownership, focus on these factors: Can you truly afford it? Will you actually use it? Does it align with your lifestyle goals? And are you prepared for the ongoing commitment?
Want to discuss cottage properties or explore what's available in your budget? Team Keogh knows the Barrie area and surrounding cottage country markets. We can help you understand current pricing, identify opportunities, and determine whether cottage ownership makes sense for your situation.
Looking for cottage properties or need help evaluating the cottage market? Contact Team Keogh, Barrie Real Estate Agents today for honest advice and local expertise.
New real estate insights drop every Friday at 7pm. Subscribe to stay updated on market trends, buying strategies, and property analysis across Barrie and cottage country.
