Canadian millennials have another reason to resent baby boomers. First they reaped the benefit from one of the biggest property-price increases in the country’s history. Now they’re driving up the cost of a country retreat.
Prices of ski chalets, waterfront cottages and other vacation properties jumped 13 per cent across Canada in the 12 months through June, according to brokerage RE/MAX Integra in a report on Thursday.
“Baby boomers who are entering their retirement, bought homes 30, 25-plus years ago, paid them off, and have gained tons of equity and are taking that equity out and buying second homes or are just selling their primary homes all together and buying a recreational property to retire at full time,” Christopher Alexander, executive vice president at real estate firm Re/Max Integra, said in an interview.
British Columbia had the biggest jump in prices among the provinces at 19 per cent, with the cost of a waterfront property in Tofino soaring as much as 112 per cent to $1.4 million and 21 per cent in the ski resort of Whistler to $790,000. In Ontario, prices jumped by 15 per cent, with a waterfront spread in Wasaga Beach rising 18 per cent to $950,000.
Prices on the Prairies by contrast fell 4 per cent from the previous year amid an economic slowdown and the harsher impact of tighter mortgage-lending rules. Atlantic Canada prices remained flat.
Benchmark home prices jumped 46 per cent to $637,500 in the five years through May, propelled by an 81 per cent gain in Vancouver to $1,094,000 and rose 63 per cent in Toronto to $772,400.