Generation X dominates the cottages market amid $1-trillion wealth inheritance from baby boomers

The latest report by Re/Max Canada shows that Generation X is driving Canada’s recreational real estate market.

Members of Gen X, aged 43-58, are dominating the country and accounting for 91% of transactions, Re/Max says. It’s much more than during previous years when the market was driven by retirees, consisting of baby boomers aged 59-79, and their Gen-X children.

The desire to find more affordable homes may be one of the reasons for this Gen-X’s buying madness, as prices in cottage country are lower than what the city can offer. However, part of this demographic shift can be explained by the fact that baby boomers are passing their money to family as part of the predicted $1-trillion intergenerational wealth transfer, Re/Max noted.

Inheritance plans are playing a huge role in people’s decision to own cottages. The possibility to give recreational property to the family is the main reason for 51% of Canadians, including 47% of Gen-Xers, who own or plan to buy a cottage, according to a Leger poll conducted on behalf of Re/Max. This is also why 42% of today’s recreational home owners are keeping their properties. Meanwhile, others are moving to give their cottages to the family while they’re still alive: 56% have already put their property to a relative’s name or plan to do it.

One more factor forcing people to buy recreational properties is the opinion that the quality of life is higher in cottage country than in large city centres. This reason was mentioned by 36% of Canadians, including 45% of Gen-Xers. The number goes up to 55% for buyers thinking about moving to a cottage.

“As the differences between recreational and residential properties become more and more blurred in a trend that appeared during the pandemic, quality of life has become even more important than ever,” – noted Elton Ash, executive vice-president, Re/Max Canada.

Canadians have vivid ideas about what makes the perfect recreational property. Their top five of the most important features include an affordable price (43%), proximity to water or waterfront (32%), affordable maintenance costs (29%), proximity to necessary amenities (29%), and access to emergency services (27%).

The recreational property market has cooled off after a record 2022 activity, according to recent data. So, half of the regions now show more balanced conditions and maybe now is a good time to fulfill your dream and buy a house by the lake!

Don’t forget that we provide mortgage financing for cottages with year-round access at the best interest rates and with as low as 5% down payment!