Cottage Life: A Solution to Canada’s Urban Housing Shortage?

The cost of living in Canada’s large cities has priced many world-be homebuyers out of the market. With rising prices and limited inventory being the new normal in Toronto, Montreal and Vancouver, some home seekers are choosing to look beyond the city boundaries, in the direction of areas that they once visited only on weekends. Indeed, the weekend retreat has emerged as a way to get around Canada’s urban housing crunch. REMAX’s 2025 Canadian Cabin & Cottage Trends Report reveals that 30 per cent of potential homebuyers are considering cottages as an option for primary residence. Another 29 per cent mention urban housing shortages as driving the trend.

The move to the country might relieve some of the pressure on urban markets, but it also begs a few questions. What happens to summer towns when they’re transformed into year-round towns? Do these towns lose some of their “cottage” desirability? And are they equipped to handle a population boom? So, what’s actually behind the trend, and what does it mean for cities that primarily have seasonal habitation? Let’s find out.

The Canadian Housing Crisis

Housing prices keep rising in bigger cities such as Toronto, Montreal and Vancouver, with low supply, tough competition, and young families and first-time buyers finding themselves losing out on ownership opportunities. With that said, Canadians still value and want to achieve home ownership, and they’re finding new ways to make that happen – such as relocating. Part of the problem is supply. In some cases, cities can’t keep up with demand for housing due to a variety of factors, such as construction costs, zoning laws, and the influence of population growth and foreign investment. Renters are feeling the squeeze as well, with fewer options and pricier monthly payments. This widening gap is forcing Canadians to think more creatively about where—and how—they want to live. These pressures aren’t only bearing down on housing options but lifestyle decisions as well.

The Cottage and Cabin Country Boom

Cottage and cabin life became more attractive during the pandemic, with the widespread rise of remote work. Fewer people had to commute to the office, so being further removed from cities was suddenly more convenient. This shift brought newfound popularity to less crowded, more expansive spaces, and recreational properties fulfilled these criteria. People who had bought houses began to desire peace in the mornings, fewer neighbours, and elbow room that you simply cannot find in a city condo. Relatively lower house prices in rural communities also made cottage ownership more appealing. With demand, though, came higher prices. Cottage markets surrounding major urban centres became some of the fastest growing, with buyers bidding up cottages that previously sat vacant during winter months.

Urban vs. Rural Living: The Trade-offs

Life in one of Canada’s many recreational property markets is quite different from urban living. In the city, the bus, doctor’s offices, and summer festivals are at your doorstep. Cottage life may mean longer distances to travel to access amenities, fewer people, and a more leisurely, slower pace of life. For some Canadians, that’s all part of the dream and they are prepared to make the change. Meanwhile, others crave the city streets. It’s knowing your neighbours’ names and having a sense of close-knit community.

With that said, cottage living does have trade-offs. Relocating to cottage country may involve accepting longer commutes, fewer services, and spotty internet connections. It all comes down to priorities and lifestyle goals. This migration is already underway in cities like Toronto, as people relocate outside city boundaries. To perfectly illustrate this example, read about what’s occurring in Toronto’s housing market as out-migration redefines city living.

The Long-Term Viability of Cottage Life as a Housing Solution

So, is this a short-term reaction or a long-term trend? It is too early to say with absolute certainty, but all signs are indicating a shift in attitude toward home ownership. The pandemic was the catalyst, but the root causes, like affordability and lifestyle, are not going away in the near future.

Rural communities, too, can transform. More demand can spur investment in infrastructure, healthcare, schools, and digital connectivity. With a larger number of permanent residents, these towns can experience new economic development and services growth. The reality is that seasonal towns are not designed to support large populations year-round. There will be a need for a managed process to preserve the quality of life and protect the character that attracts visitors.

Potential Drawbacks of Cottage Life as a Solution to Housing

Infrastructure to accommodate the growth of the rural population is one of the greatest concerns related to this emerging trend. Many cottage towns have limited road capacity, small schools, and rudimentary public services, and a fast-growing population may overwhelm these systems. Core services like health care, municipal water, and road maintenance must be planned and may require enormous investment. To crown it all, public transportation in these communities may not suit car-free individuals accustomed to having everything within walking distance. Some other considerations in smaller towns can be the cost of utilities, groceries, and other essentials, since these may not be easily accessible. Finally, there’s the culture consideration.

The cottage towns are loved for being seasonal, and permanent residents would change community life and long-standing tradition. There’s an environmental factor as well; more houses mean more waste, water usage, and pressure on natural ecosystems. Population increases would have to be managed to maintain the lifestyle and appeal of these communities.

Expert Views and Comments

The shift toward cottage living may not be a permanent relocation for everyone.

“As most businesses return to the office, this may not be a long-term solution for most professionals,” says REMAX Canada President Don Kottick. “Yet it’s a positive sign of the reality that Canadian homebuyers are resilient and eager to invest in real estate that provides short- and long-term value.” With constrained supply, pricing concerns, and plenty of purchasers looking for neighbourhoods that match their lifestyle, it’s no wonder that cottage enthusiasts are making the move to year-round residency—something that has long been equated with retirees.

Whether year-round cottage living is a long-term sustainable reality has yet to be determined; in the near term, it’s an attractive choice. It’s a chance to escape the city, assume a different tempo of life, and redefine the meaning of Canadian homeownership. Time will determine whether this is the new standard or a sidestep. One thing is certain, however: more Canadians are reshaping what ‘home’ means. Considering making the leap? Here are things to remember when purchasing a cottage. When the time is right, call a local REMAX agent with experience in cottage country.