From the glaciers and snow-capped peaks of the Rocky Mountains to the warmest beaches of Nova Scotia, Canada has a wealth of natural marvels that are unrivaled around the world. Beyond the stunning vistas, Canada also has a plethora of engaging activities and many charming small towns sprinkled throughout its beautiful scenery. This makes the second largest country on the planet one of the best places in North America to invest in recreational property.
If you have already purchased your primary home for sale in Toronto but want to trade the city’s fast-paced environment for a serene lifestyle in a nearby small town, buying a Toronto vacation home in an Ontario recreational community seems like the right path for you. And you will not be alone. According to a Royal LePage survey, more than 10% of Canadians own at least two homes, 13% of whom are from the Greater Toronto Area.
Canada Recreational Market Trends
In the past few years, there has been a significant rise in the demand for vacation homes in Canada. As a result, RE/MAX Canada predicts that the average prices of residential dwellings in recreational markets will go up 20% by the end of this year. The soaring demand started during the Covid-19 pandemic when homebuyers (mostly retirees, couples and families, out-of-towners, and investors) turned to recreational housing for livability and affordability.
Whether as a primary or secondary residence, buyers prioritized acquiring waterfront cottages with plenty of open space and acreage and ended up settling and remote-working in these vacation spots long term. According to a Leger survey, 75% of Canadians who live in recreational areas are satisfied with their quality of life.
While a lot of Canadians have gone back to in-person jobs, the seller’s market conditions in the most popular recreational areas in the country are expected to continue. The good news is that some small communities in Southern Ontario still offer relative affordability. So if you’re looking to invest in a second property in Canada, we’ve compiled a list of the 5 best places to buy a vacation home near Toronto real estate. Neither of these towns is more than four hours away from Toronto and they’re organized by affordability.
Muskoka Lakes, Ontario
Average Recreational Property Price: $1.4M
Distance From Toronto: 3 hr 2 min / 239 km
Lauded by many as a top vacation destination in Canada, Muskoka Lakes, also known as the “Hamptons of the north,” is only a three-hour drive from Toronto and one of the top Canadian recreational real estate markets of 2022. This picturesque Ontario township, a favourite among affluent vacationers for decades, boasts lush forests, quaint small towns nearby, rural areas, and pristine lakes that present ample opportunities for recreation.
One thing that makes Muskoka Lakes one of the best places to buy a vacation home near Toronto is that this is a four-season destination. Muskoka Lakes features idyllic beaches and water sports in the summertime; landscapes and trails become a blaze of colours come fall; and there are skiing/snowboarding opportunities during the cold season.
A lakeside property, like a cottage or a cabin, is a no-brainer when it comes to real estate investment in Muskoka Lakes. Torontonian cottagers commonly prefer to buy Toronto real estate near areas like Lake Muskoka, Lake Joseph, Lake Rosseau, and Georgian Bay. Still, those looking for the peaceful ambiance of more private lakefront property commonly turn to the smaller lakes.
But before you pack your bags and trade Toronto’s hustle and bustle for a cottage country lifestyle full of boating, fishing, hiking, and camping, you should know that the average waterfront spot in Muskoka Lakes has an average price of $1.4M. Even before Covid, Muskoka’s inventory of glass-and-steel lodges, post-and-beam houses, and log cabins was minimal. If we add the current high demand for cottages, it’s easy to understand why prices rose 49% from 2020 to 2021.
Haliburton County, Ontario
Average Recreational Property Price: $1.1M
Distance From Toronto: 3 hr 11 min / 231 km
Located around 230 kilometres northeast of Toronto, Haliburton County has long been a popular destination among cottagers from the city. The county is known for its stunning natural beauty, with forests, rivers, and over 600 lakes offering endless outdoor recreation opportunities. In addition, Haliburton County nurtures a thriving arts community that promotes its work across the local galleries, studios and performing arts venues.
As one of the best places to buy a vacation home near Toronto real estate, Haliburton County offers one-of-a-kind adventures and experiences, from lake parasailing in the summer to dogsledding in the winter. Of course, there’s the expected, more traditional provision of country things to do, like hiking, mountain biking, swimming, canoeing, camping, and fishing. And for those who prefer a more relaxed pace, there are numerous golf courses and spa resorts nearby.
Haliburton County is also home to a number of small local municipalities and townships, including Algonquin Highlands, Dysart et al, Highlands East, and Minden Hills, each with its own unique charm. In recent years, the county has been experiencing an influx of tourists and new residents drawn by the local natural beauty and rural charm. As a result, Haliburton County has improved its infrastructure and amenities to better accommodate its growing population.
Right now, Haliburton County is a prolific seller’s market with rising prices and numerous buyers wanting to exchange their urban life in the Greater Toronto Area and Hamilton for all the perks of rural living and working remotely. The most affordable vacation homes in Haliburton County are non-waterfront and cost around $600K, while waterfront chalets, bungalows, cottages, and rustic cabins are priced at over $1M.
Kawartha Lakes, Ontario
Average Recreational Property Price: $1M
Distance From Toronto: 1 hr 49 min / 139 km
The municipality of Kawartha Lakes is a little over an hour and a half northeast of Toronto’s core and just east of Georgian Bay. This lovely region of 3,000 square kilometres is close to urban centres and offers homebuyers abundant water views and cottages and bungalow-style vacation homes for sale. Kawartha Lakes is an especially appealing destination for young professionals wanting to work on their laptops dockside and go to the city only on weekends during the summer.
With over 250 lakes and rivers, Kawartha Lakes offers endless outdoor recreation opportunities, including fishing, hunting, camping, boating, and swimming. The region is also home to countless parks and trails, including The Ganaraska Trail, Kawartha Trans Canada Trail and Victoria Rail Trail Corridor, ideal for hiking, biking, and horseback riding. In addition to its natural beauty, Kawartha Lakes is home to several cultural attractions, like the Fenelon Falls Museum, the Kawartha Art Gallery, and the Bobcaygeon Lock 32 Museum.
Buying a Toronto vacation home or condo near Kawartha Lakes is a smart real estate investment. Not only will you be able to enjoy all the region has to offer, but you can also rent your home out when you’re not using it. Toronto vacation homes near Kawartha Lakes typically range from traditional cottages and cabins to modern new construction condos and luxurious lakeside estates with private docks. Property prices in Kawartha Lakes range from $449K to multi-millions. From 2020 to 2021, the prices for landlocked homes for sale in Kawartha Lakes rose by 48%, while waterfront properties have, on average, sold for $900K.
Prince Edward County, Ontario
Average Recreational Property Price: $966K
Distance From Toronto: 2 hr 52 min / 203 km
Prince Edward County, lovingly known as “The County,” is a charming municipality located on an island east of Toronto, on the banks of Lake Ontario. Prince Edward County owes its popularity to its sandy beaches, sprawling vineyards, craft breweries, festivals, and artist studios. Locals and visitors also enjoy strolling Prince Edward County’s idyllic lavender farms and exploring the sand dunes of Sandbanks Provincial Park.
While many other vacation destinations near Toronto real estate are commonly filled with weekenders, Prince Edward County has only gained popularity recently. This means that the residential real estate market has experienced less pressure, and the area remains a quaint farming community of gently rolling hills and friendly small towns.
“The County” is home to approximately 25K permanent residents and another 6K people who live there part-time. Summer is the busiest time of the year with all the food and music festivals and plenty of hiking, biking, canoeing, and birdwatching in picturesque parks and forests. Wintertime activities include skating, ice fishing, cross-country skiing, and what’s even better: most wineries are open throughout the year!
In recent years, Prince Edward County has become an increasingly popular destination for vacation homeowners from Toronto and Ottawa. As a result, the real estate market in the county has become quite competitive. Landlocked recreational properties are typically more affordable, but with nearly 500 miles of shoreline in Prince Edward County, homebuyers can purchase cozy summer cottages, cabins, or even new construction condos or single-family residences with stunning vistas and easy access to any of the local beaches.
South Bruce Peninsula, Ontario
Average Recreational Property Price: $795K
Distance From Toronto: 3 hr 19 min / 223 km
South Bruce Peninsula is a town located between the rocky shores of Georgian Bay and the beaches of Lake Huron on the Bruce Peninsula in Ontario, Canada. The town is known for its scenic beauty, turquoise waters, and towering limestone cliffs. This picturesque corner of Ontario, sitting just over three hours northwest of Toronto real estate, has been a popular vacation destination since the 1800s.
The community comprises several picturesque villages with beachside boardwalks, marinas, golf courses, and campsites, as well as desirable cottages for sale, giving this region a traditional family getaway feel. There are also two main urban areas, Sauble Beach and Wiarton, offering plenty of modern vacation homes for sale close to unique shops, restaurants and amenities.
South Bruce Peninsula is also well-regarded due to its proximity to Bruce Peninsula National Park, Point Clark Lighthouse, and Fathom Five National Marine Park, home to shipwrecks and unique caves and rock formations. There’s plenty to keep you busy from hiking and swimming in the summer to skiing and snowshoeing in the winter.
Compared to other parts of Ontario, the South Bruce County residential real estate market is still considered reasonably priced. Homebuyers looking to purchase vacation homes in Kincardine, Southampton, Sauble Beach, or Port Elgin can expect entry-level prices starting at $500K. Affordable types of housing available include spacious apartments and townhomes, but if you’re after a high-end waterfront single-family home, anticipate paying no less than $2-3M.
Best Places To Buy A Vacation Home Near Toronto
If you’re looking for a recreational property in Ontario, you now know the five best places to buy a vacation home near Toronto. Keep our list handy before you start your search! Whether you’re looking for a place to escape to on weekends or want to retire near the action, consider buying now before the Toronto real estate market gets even hotter. Contact a local real estate agent if you need help finding that perfect cottage or want more advice on what to look for in a vacation home.
