Boomers drive up cost of recreational properties in BC

By NextHome Staff
August 20, 2018

A survey of RE/MAX brokers and agents found that recreational properties are experiencing a surge in pricing, with 78 per cent of regions surveyed showing a higher median price in 2018 compared to 2017.

The survey, conducted in spring 2018, showed that 91 per cent of popular Canadian recreational markets are being driven by retirees and, with seniors outnumbering children in Canada for the first time as reported last year, retirees as a population are also driving up prices.

Median prices

Compared to 2018, the median price of recreational properties, including waterfront, non-waterfront, water access and ski-in properties, has increased by 13 per cent across Canada. Median price information was calculated for the periods of July 2016 to June 2017, and July 2017 to June 2018.

Overall, British Columbia saw an increase of 19 per cent, with the median price in areas such as Tofino increasing by as much as 112 per cent. Lack of inventory in the small region drove prices higher. Sun Peaks , one of Canada’s largest ski areas, saw an increase of 34 per cent, due to its available services and schooling attracting retirees as well as families.

Forecast

“BC’s economy is the fastest growing in the country and its status as a destination market has contributed to the strong growth of its recreational market,” says Elton Ash, regional executive vice-president, RE/MAX of Western Canada.

RE/MAX brokers foresee current trends continuing into 2019. Brokers in BC speculate that in the next two to five years, the market will see a shift from retirees to younger buyers driving demand for recreational properties, as the latter accumulate more purchasing power.

Below are key findings from the 2018 RE/MAX Recreational Property Omnibus Survey.

Owning a recreational property

One-quarter (24 per cent) of Canadians would consider buying a recreational property in the future.

Reasons for owning

Canadians cite the following reasons to own or want to own a recreational property (numbers represent percentages):

  • It is where I can go and relax and spend time with friends and family = 58
  • It is a getaway home = 46
  • I can do activities I can’t do at my permanent residence = 41
  • It is an investment property = 33
  • It is a retirement home = 19

Travel time

More than two-thirds (68 per cent) of Canadians who own or are considering owning a recreational property are willing to travel up to two hours, with 31 per cent willing to travel two hours. Slightly less (28 per cent) are willing to travel three or more hours.

Property features

Canadians identify the following features as important when considering their current or a future recreational property (numbers represent percentages):

  • Affordable purchase price = 64
  • Waterfront access = 55
  • Reasonable maintenance costs = 53
  • Proximity to town = 43
  • Reasonable distance from primary residence = 37
  • Relative seclusion = 33
  • Land access = 30
  • Proximity to sports/recreation = 25
  • Accessible medical facilities = 24
  • Nearby neighbouring properties = 15
  • Island property = 12

RELATED READING

1.4+ Million boomers to buy homes in five years – BC

Increase in recreational properties as retirement homes

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