Supply low, demand high in cottage market: expert

The Fall Cottage Life show will be taking place Nov. 11 to 13 at the International Centre in Mississauga, and it's a chance to learn more about the cottage market and lifestyle  trends.

Michelle Kelly, editor of Cottage Life magazine and host of the Cottage Life podcast will be at the show with Terry Rees from the Federation of Ontario Cottagers' Associations (FOCA) discussing cottage rentals. 

The Cottage Life team will also be on-hand offering advice and answering questions on a number of cottage-related topics.

Kelly spoke with BradfordToday about the current state of the cottage market and the role the pandemic has played in it.

“The cottage market has been so hot and desirable for a long time,” she said. “The pandemic supercharged people wanting to get out of the city and getting out to cottage country. Working from home made a difference too because people have more ability to not be at their desks. All of that meant that the cottage market over the last few years has been difficult because there are very few listings and a lot of demand.”

Over the past few months, high interest rates and inflation has impacted the cottage market.

“People are being very careful with their money and maybe not looking to buy a second property,” Kelly explained. “But there’s still demand and there are more buyers than properties.”

To counteract those costs, Kelly says there’s been an increase in cottage buyers looking to rent or even make their cottages their permanent home.

“There’s been a merging of a few different trends and while cottages have become more expensive overall, there’s more ways to afford them,” she said. “Renting has become really popular. A lot of people buy them now to rent later. There’s a really strong market for renting. There’s also been a movement towards buying a cottage to live at and renting in the city because affordability in cities has become a challenge. That’s putting pressure on the cottage market as well as the desire to get out of the city increases.”

Renting has become a popular market for would-be cottage buyers as a “worry-free” way for those who want the cottage experience without the long-term commitment, says Kelly, especially with the boom of renting apps.

“It’s bolstered by the fact you can go on cottagelife.com, and through our partnership with Vrbo, you can access thousands of listings across the country,” she explained. “It’s really easy to do and because of that more people are more interested in renting. Renting has become easier, and it’s become more common place in our culture to stay in someone else’s home.”

Knowing how strong of a connection cottagers have to their property and environment, Kelly doesn’t see the market slowing down, even with affordability issues.

“Despite what’s going on in the market at any one time, cottaging is a desirable lifestyle—particularly in Canada,” Kelly said. “Ontario’s cottage country is spectacularly beautiful and that’s certainly not changing. The desire to be there will remain and the majority of people searching for a cottage want that lifestyle. They want to return to the same cottage with their family and watch their children jump off the dock and teach them how to water ski. Despite the market and the economy, that’s the true nut of cottaging. I don’t see that going away and I think it’ll remain strong regardless of any economic situation.”

In fact, Kelly thinks that the cottage market will only grow stronger as people commit long-term to make their dreams a reality.

“I meet people all of the time who save and plan for having their cottage,” she said. “They buy one and it’s the culmination of their lifelong dreams. People take it really seriously and I don’t see that going away.”

In May, RE/MAX forecasted the average cost of cottages would rise by 20 per cent for the remainder of the year.

“It’s different in each area and it really depends where you go in the province in terms of prices,” says Kelly. “Overall, there are fewer listings but we’re not seeing as many people finding an available listing and jumping on it because they’re afraid there won’t be another one. That’s always my advice, don’t just buy something because it’s available, think of a cottage as a longer-term investment and something you’ll have forever and make memories at. So, give it time and find something you love.”

The Fall Cottage Life Show will run concurrently with the Seasons Christmas Show, offering guests access to both shows for the price of one admission. Tickets are available now at shows.cottagelife.com.