Alberta Recreational Market Prices Set to Rise 3.3%

Average price in the Alberta recreational market is expected to rise by 3.3 per cent in 2025, according to RE/MAX’s 2025 Cottage Trends Report. The region as a whole continues to experience strong demand, resulting in a seller’s market in Banff/Canmore and Central Alberta, with ongoing inventory shortages. Meanwhile, Edmonton Lakes continues to experience balanced conditions going into the summer months. Despite ongoing economic concerns, declining interest rates over the last year have made the option of a recreational property a reality for those looking to purchase in Alberta.

Buyer demand remains high in the Alberta recreational market, with families and retirees driving current activity across the province. Edmonton Lakes should see out-of-province buyers from British Columbia and Ontario become more active in the summer, a trend seen annually. Popular property features top of mind for buyers are larger properties that offer outdoor green space and access to recreational activities. Waterfront properties continue to be in demand (in Edmonton Lakes and Central Alberta) along with stable Wi-Fi access (in Edmonton Lakes).

Short-term rental restrictions that are an issue in other provinces are limited in Alberta, which makes the Alberta recreational market appealing to buyers, but popular spots such as Canmore and Edmonton Lakes do have localized restrictions that buyers should be aware of. The town of Canmore’s recent “livability tax” which was approved in 2024, requires homeowners to declare if their property in the town is a primary residence.

Uniquely, with the wealth transfer in progress across the country, Edmonton Lakes has experienced some owners opting to sell their recreational properties to settle their estate before it passed down to future generations.

With the uptick in wildfires across Alberta and the Prairies in the last few years, all regions have flagged that climate concerns remain. Buyers from within the province are aware of these events and while it is a concern, it has not deterred buyers. It’s noted that these climate events do impact the spaces homeowners enjoy, such as the lower lake levels experienced in Edmonton Lakes.

Alberta Recreational Market Overview

Banff/Canmore Market Overview

Banff and Canmore are experiencing a seller’s market due to a combination of lack of inventory and strong buyer demand as Alberta’s population continues to grow. Average residential sale price across all property types increased by 28.6 per cent year-over-year (from $1,030,000 in Q1 2024 to $1,325,000 in Q1 2025). The number of transactions across all property types decreased by 6.2 per cent year-over-year (from 130 in 2024 Q1 to 122 in 2025 Q1). Looking ahead, average sale prices is likely to increase five per cent by end of 2025, and the number of sales is likely to remain flat by the end of 2025.

The region has seen strong demand in the first quarter of the year for higher-priced properties compared to the first quarter of 2024. Properties aren’t typically on the housing market for very long – buyers purchase quickly given the scarce inventory available and competition. However, amid economic uncertainty, there are some who might choose to wait-and-see until later into the year. Historically, higher-end properties also sell well as buyers seek to move money out of their stock market portfolios and into real estate.

There is a well-rounded mix of young and middle-aged couples, retirees, families and those seeking to transfer their wealth driving cabin and cottage sales in the region. Overall sales of properties are anticipated to remain consistent with last year’s sales, and although there are less out of province buyers for now, how these trends evolve will depend on the results of the federal election, U.S. tariffs and interest rate fluctuations. The region tends to see higher net worth individuals purchasing real estate when there is stock market uncertainty and lower interest rates as real estate in Canada remains a stable investment. Most recreational property buyers in the region are coming from urban centres within the province, although more out of province buyers could become interested in the region, depending on their lifestyle, property goals and desire to relocate.

The features and amenities most in demand among residential property buyers in 2025 are:

• Larger properties with more outdoor/green space
• Access to recreational activities (such as skiing and water sports)
• Larger living spaces with home offices and gyms

Some buyers are choosing to rent out their properties, and there is strong demand for properties that can be used on Airbnb websites when owners are not using them.

Buyers in the region do not want to purchase a property that needs large renovations. They’d rather purchase a property that doesn’t need any work, even if the cost for such a turn-key solution is a little higher.

Out of province buyers should be aware of the risk of climate events, such as wildfires in and around the Bow River Valley.

Buying Advice:

Canmore has unique market conditions, it’s important to use a realtor who understands and can clearly communicate these conditions to you when going through the buying or selling process.

The Town of Canmore has implemented a “liveability tax” for all homeowners that do not declare their property in Canmore as a primary residence. This is an additional 0.4 per cent of the assessed value. To qualify as a primary residence, a Canmore property be a person’s primary residence for at least 183 days of which 60 are continuous. This provision is meant to preclude properties being rented out short-term from qualifying.

Central Alberta Market Overview

Central Alberta is experiencing a seller’s market due to a combination an inventory shortage and strong buyer demand. This is consistent with the increase in Alberta’s population as more Canadians are choosing to make Alberta home due to affordability.

Average recreational sale price across all residential property types, decreased year-over-year (from one sale of $265,500 in Q1 2024 to three sales of $97,333 in Q1 2025).

The climate doesn’t work as well with “cottages and cabins” if they aren’t built for four seasons since there are only two seasons in Alberta, winter or summer. The market for four season cabins and cottages is stronger in the first quarter of 2024 and 2025, being similar in terms of low supply, strong demand and rising prices.  No changes are anticipated in the future, barring an economic slowdown.

Retirees and families are driving cabin and cottage sales in the region. These buyers are anticipated to remain the same and haven’t changed from last year. The region tends to see mostly buyers coming from urban centres from within the province, although more out of province buyers could become interested in the region, depending on their lifestyle, property goals and desire to relocate to a relatively cheaper area.

The features and amenities most in demand among residential property buyers in 2025 are:

Larger properties with more outdoor/green space

Waterfront properties

Access to recreational activities (such as skiing and water sports)

Consumer confidence in the region is generally good, even amid some economic uncertainty and the threat of U.S. tariffs on construction materials. Lack of inventory is the main barrier.

Buyers in the region are interested in both properties that need renovations and are turnkey. While some would rather purchase a property that doesn’t need any work, there are some with the know-how and experience who are seeking to renovate at a cheaper price.

Cabin and cottage owners in the region are expressing interest in passing their cottage properties down to future generations, such as their children or grandchildren, to maintain and care for the property after they pass.

Buying Advice:

Out of province buyers should be aware of the risk of potential climate events, such as wildfires and winter storms, around Central Alberta. Additionally, climate events may impact your home insurance premiums and you should always work with a professional to help guide you.

 Edmonton Lakes Market Overview

Across the region, the market is expected to be balanced due to lower interest rates and Alberta’s growing population putting additional pressure on inventory as more Canadians look to call Edmonton Lakes home. Average recreational sale price across all residential property types, increased by 43.6 per cent year-over-year (from $446,986 in Q1 2024 to $641,739 in Q1 2025). Meanwhile, the number of transactions across all recreational property types increased by 33.3 per cent year-over-year (from 9 in 2024 Q1 to 12 in 2025 Q1). Average sale prices are likely to increase five per cent by the end of 2025 while the number of sales expected to remain the same.

Attracted by Alberta’s relative affordability compared to other provinces, a growing number of families, couples, retirees, and out-of-province buyers are exploring homeownership in the region. As a result, the market is expected to remain stable despite increasing economic uncertainty.

The spring season is beginning which will lead to more active listings and the market appears to be entering stable conditions in contrast to 2024, where there was a decline in sales May through August 2024.

Buyers from urban areas are seeking waterfront properties, access to recreational activities like skiing and water sports along with good Wi-Fi access. Particularly, buyers are looking in regions like Wabamun which are receiving upgrades from the county along with a new subdivision as well as resort properties in Sunset Shores and Pineridge. As more Canadians consider national travel and foregoing their US vacations, many are considering Alberta.

As interest rates drop, more Canadians are considering adding a recreational property as long as affordability remains consistent benefitting from a staycation mentality, and the region is seeing less recreational property purchasing with the goal of rental.

Many of these regions are experiencing drought and buyers continue to be concerned about climate impacting lake levels and increase in wildfires. These environmental concerns likely impact insurance premiums across homeowners.