An article published on MSN by writer Lyn Sable has named several 705 regions as the most affordable for consumers looking to escape urban life by purchasing waterfront properties.
In spite of its distance from Toronto – a 15-hour drive or 2-hour flight – Thunder Bay made the MSN list. The article also says that Sudbury’s prices and rugged landscape would appeal to mid-range buyers.
Kawartha Lakes and the popular Trent-Severn Waterway has long been a popular cottage destination. Haliburton, known for its fishing and hiking, remains popular with buyers looking for something more affordable than Muskoka properties.
The Parry Sound District is listed in the article as “offering more budget-friendly alternatives to upscale Georgian Bay locations.” Its close proximity to the Almaguin Highlands also attracts buyers.
Also listed in the story are Peterborough and the Kawarthas, and Grand Bend.
The waterfront cottage market in Muskoka has always been divided between low to mid-range and luxury properties, but current market influences are broadening this division. Since the 2021 peak, unit sales for cottages under $3 million have dropped by approximately 65%. In contrast, properties priced over $3 million have seen a more moderate decline of 44%. Most high-end transactions take place on Lake Joseph, Lake Rosseau, and Lake Muskoka, with Lake of Bays and Skeleton Lake also edging into the upper-tier market.
According to data from Find Your Muskoka – a real estate magazine – in Q1 2025, the median sale price for waterfront properties edged up 1% year-over-year to $990,000, indicating continued value for prime real estate despite a slowing market. However, according to CREA Stats (Canadian Real Estate Association), the median price for waterfront properties in Muskoka & Simcoe County was $947,500 in the second quarter of 2025, representing a 6.7% decrease year-over-year.
An article from Cottage Life magazine states that “Last year, the national median price for a recreational single-family home in Canada was $627,700. This applies to waterfront properties in Canada’s cottage country, wooded cabins, and chalets and condos in ski areas. That number is expected to reach $652,808 in 2025, according to Royal LePage’s 2025 Spring Recreational Property Report.”
The Muskoka region is currently firmly in a buyer’s market. The increase in inventory has allowed the market to slow a little with properties sitting for longer. In comparison, non-waterfront properties spent less time on the market in the second quarter of 2025 than they had a year earlier.
Of course, the factor that everyone across Canada is monitoring is the potential impact of U.S. tariffs on our economy. According to the latest Bank of Canada report, all possible scenarios result in higher costs for many goods imported from the U.S. With building costs expected to rise, we could see a significant decline in supply. How that will impact interest rates and consumer confidence remains to be seen. Find Your Muskoka says that “The cottage market faces heightened vulnerability as volatile interest rates, elevated living costs, and declining economic confidence converge with an oversupplied and demand-constrained environment.”
Further south, a new report from the Toronto Regional Real Estate Board says GTA home sales rose 10.9% in July – the most activity recorded in the month since 2021. Improved affordability driven by lower prices and borrowing costs is making it a boon for the buyer’s market.
