Why tariff turmoil is not slowing Canada’s cottage market

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Uncertainty from Donald Trump’s tariff war and geopolitics are expected to slow Canada’s housing market, but cottage sales should generally withstand the “economic chaos,” said a new report from a Canadian real estate company.

Several factors, including a growing trend for domestic travel in the wake of United States tariffs, a weak Canadian dollar, lower interest rates and cottage buyer demographics, are helping to keep the cottage market busy even in these trying times.

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The median price for a single-family recreational home is expected to increase by four per cent this year to $652,808, according to Royal LePage’s 2025 Spring Recreational Property Report.

“Demand for recreational properties among Canadians, and the lifestyle they offer, remains strong, but balanced,” Royal LePage chief executive Phil Soper said in a release. “While the mainstream market is more sensitive to economic shifts, demand in the recreational segment remains steadfast, even during periods of market hesitation. Many families share the deep-rooted desire to own a recreational home, and that is unlikely to change.”

A survey released on Wednesday of 153 Royal LePage brokers said 46 per cent of them are experiencing cottage-buying demand similar to last year and 24 per cent are experiencing more.

In the overall housing market, national sales fell 3.3 per cent in January, according to the Canadian Real Estate Association (CREA).

Soper said the recreational real estate market often withstands economic uncertainty because buyers typically have more disposable income and are less vulnerable to changes in the economy.

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Dropping interest rates have also helped keep the cottage market active.

The Bank of Canada has cut interest rates during its last seven policy meetings, though some economists expect a pause on April 10 as Canada deals with rising prices due to U.S. tariffs.

“At the same time, current trade tensions and a weakening Canadian dollar, combined with a growing sense of patriotism, are encouraging more families to stay north of the border,” Soper said. “For many, the appeal of U.S. travel has waned, driving renewed interest in Canadian recreational properties.”

Still, he said some buyers are pulling back not as a result of their personal financial circumstances, “but rather to adopt a wait-and-see approach as they seek clarity on the U.S. trade dispute and the upcoming federal election.”

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Shopify Inc. is making moves meant to boost investment in the Canadian e-commerce company.

The company announced last week it is transferring its U.S.-listed shares from the New York Stock Exchange into the Nasdaq Global Select Market, which could give it a spot on the Nasdaq 100.

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“Being included in that index would equate to more buying power for a stock,” said Matthew Maley, chief market strategist at Miller Tabak + Co, told Bloomberg News.

The moves appear to be paying off as the stock has risen 16 per cent since last week.

Read more here.

• 1:30 p.m.: Bank of Canada releases its summary of deliberations for its March 12 interest rate cut
• Today’s data: U.S. durable goods orders for February
• Today’s earnings: Bank of China Ltd., Cintas Corp., Canada One Mining Corp., BRP Inc.

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There are several factors to consider when thinking about leaving an estate to tenants of your rental property, including the understanding that a will is not a contract so conditions may not be enforced or carried out to your wishes after you pass. Read more here.

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Is the trade war having an effect on your finances? Are you making different decisions about your spending or saving habits? Is it changing your retirement math or portfolio construction? Do you see bigger plans like buying a house or starting a family slipping through your fingers? If yes, drop us a line at wealth@postmedia.com with your contact info and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

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McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

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Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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