Alberta’s recreational property market is expected to outperform most western provinces in 2025, with the median price of a single-family home forecast to rise 2 per cent to $1,296,216, according to Royal LePage’s 2025 Spring Recreational Property Report, released March 26.
Buoyed by steady demand in Canmore and growing interest in lakefront properties near Edmonton, Alberta’s market saw a 1.2 per cent price increase in 2024, pushing the median price of a single-family home to $1,270,800.
Waterfront properties outpaced this growth, climbing 6.6 per cent year over year to $663,300 — a trend expected to continue as buyers seek lakeside retreats amid declining interest rates.
"Alberta’s recreational market remains resilient, with strong demand from local buyers and relocators driving growth," said Tom Shearer, broker at Royal LePage Noralta Real Estate.
Canmore’s Luxury Market Steadies as Inventory Grows
Canmore remains the backbone of Alberta’s recreational market, with luxury properties near Banff National Park continuing to attract buyers seeking high-end mountain retreats.
In 2024, the median price of a single-family home in Canmore rose 1.8 per cent to $1,680,000, while standard condominium prices increased 1.6 per cent to $648,000, according to Royal LePage.
"Falling interest rates haven’t had a significant impact in Canmore, where many buyers pay cash and are less influenced by borrowing costs," said Brad Hawker, associate broker at Royal LePage Solutions.
Lac St. Anne Surges While Wabamun Lake Sees Price Correction
Lac St. Anne led Alberta’s recreational market in price growth in 2024, with single-family home prices rising 11.6 per cent to $297,500. Waterfront properties in the region surged 22.8 per cent to $669,500, driven by sustained demand from Edmonton-area buyers seeking lakefront retreats.
"Lac St. Anne continues to attract a diverse group of buyers, including local families, affluent investors, and relocators from other lake regions," said Shearer.
Wabamun Lake, by contrast, recorded Alberta’s sharpest price correction. Single-family home prices plummeted 41.4 per cent in 2024 to $390,000, while waterfront properties declined 11 per cent to $849,000.
"Wabamun Lake’s volatility reflects a correction after record-high prices in 2023,” said Shearer. "But buyer interest remains steady as families continue to seek accessible lakefront properties near Edmonton."
Pigeon Lake Sees Steady Growth Despite Waterfront Decline
Pigeon Lake experienced more balanced conditions in 2024, with the median price of a single-family home rising 4.8 per cent to $440,000. Waterfront property prices, however, fell 7 per cent to $551,300.
"Pigeon Lake remains a popular choice for families seeking affordability and proximity to Edmonton," said Shearer. "While waterfront prices softened, steady demand for single-family homes has kept overall market conditions stable."
Interest Rate Cuts Have Little Effect on Alberta’s Recreational Market
Since June 2024, the Bank of Canada has reduced its overnight lending rate seven consecutive times, dropping rates by 225 basis points. Despite these cuts, Alberta’s recreational market has seen little impact, as most buyers — especially in high-end regions such as Canmore and popular lake destinations — pay cash.
"Many buyers in Alberta’s recreational market are not reliant on financing, so rate cuts haven’t shifted demand," said Hawker.
Short-Term Rental Regulations Could Impact Alberta Investors
While Alberta’s recreational property owners have so far avoided the stricter short-term rental regulations seen in Ontario, Quebec, and British Columbia, concerns about future policy changes could dampen investor confidence.
"Stricter rental regulations in other provinces have made it harder for owners to generate income," said Shearer. "Alberta may not be immune to similar changes down the road."
Nationally, 31 per cent of recreational property experts reported a decline in buyers intending to use their properties for rental income, with the figure higher in Ontario (36 per cent) and British Columbia (32 per cent).
Outlook for Alberta in 2025: Modest Gains and Stable Demand
Alberta’s recreational property market is forecast to post a 2 per cent price increase in 2025, driven by continued demand for high-end properties in Canmore and strong interest in lakefront destinations such as Lac St. Anne.
"Alberta’s recreational market remains a top choice for buyers looking to invest in luxury properties and waterfront homes," said Shearer. "While some regions may experience price corrections, overall market conditions remain balanced heading into 2025."
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