Navigating the Canadian Real Estate Market:
A Focus on Short-Term and Seasonal Rentals

by Sean Landreth

In this article, we are using Revelstoke and Mont Tremblant as case studies to explore broader trends in the Canadian real estate market, particularly regarding short-term and seasonal rentals. The insights and data presented here are illustrative of these specific regions and may not represent the entire market.

Short-term rentals have become a vital component of the real estate landscape, particularly in tourism-centric regions like The Blue Mountains, Revelstoke, and Mont Tremblant. This segment is driven by several key factors:

Tourism Recovery: As global travel rebounds, demand for unique and localized accommodation experiences has surged, benefiting short-term rentals. In the Blue Mountains, for instance, the average daily rate (ADR) for short-term rentals managed by Property Valet has risen significantly higher than industry averages, with a 22% year-overyear increase for July 2023 vs. July 2024 and a 46% increase year-over-year for August 2023 vs. August 2024. Occupancy rates remain strong at around 80% during peak seasons. Additionally, SeasonalProperties.ca reports a 95% occupancy rate for their properties during the winter ski season, with expectations for the 2024/2025 ski season looking equally promising given favorable snow forecasts.

Year-Round Appeal: Destinations like Revelstoke offer year-round rental opportunities. The winter months attract visitors with activities such as heli-skiing, cat skiing, and the expansive offerings of Revelstoke Mountain Resort, which boasts the largest vertical drop in North America. Summer activities, including hiking and mountain biking, also draw a steady stream of tourists. With the expansion of Cabot and their world-class golf courses, coupled with Revelstoke Golf Club turning 100 years old this year, this small “wild west” town in the Canadian Rockies has become one of the hottest new must-see destinations in Canada, any month of the year.

Seasonal property rentals continue to thrive, particularly in regions offering activities throughout the year. In the Blue Mountains and South Georgian Bay area, the winter ski season is complemented by summer events, leading to strong demand for both short-term and seasonal rentals. This trend is echoed in Mont-Tremblant, where the market remains robust yearround and has grown in popularity for over 20 years. Revelstoke and the Canadian Rockies in general are also expected to see an increase in such properties in the years to come, as the world becomes smaller and enjoying where you live and work becomes more achievable.

Economic Resilience: Seasonal property rentals have shown remarkable resilience in the face of economic uncertainties, maintaining stable occupancy rates and rental income. In and around The Blue Mountains, seasonal rental rates have increased slightly annually, reflecting strong demand from both tourists and seasonal residents. This area uniquely benefits from being the only spot in the world with private ski clubs where the Greater Toronto Area’s wealth drives north every winter weekend.

The broader economic landscape, particularly interest rate cuts and lending conditions, plays a crucial role in shaping the real estate market. Recent and future rate cuts by the Bank of Canada will make borrowing more affordable, encouraging more investors to enter the market.

Lending Trends: Financial institutions are increasingly supportive of shortterm and seasonal rental investments, recognizing the stable cash flows these properties generate. Mortgage products tailored to investors in this segment are becoming more common, offering competitive rates and favorable terms.

Impact on Prices: While interest rate cuts generally lead to higher property prices, the market is showing signs of stabilization as more inventory becomes available. In The Blue Mountains, property prices have increased by 52.2% from August 2019 but have now settled into a more balanced market, actually down 10.2% from August 2023, allowing sensible buyers back into the local market of mixed vacation, recreational, and full-time homes. It is a great time to be a buyer!

Nationally, the Canadian real estate market remains strong, particularly in regions with high tourism appeal. The demand for properties that can serve as both personal vacation homes and incomegenerating assets continues to drive growth in select markets.

Urban vs. Rural Dynamics: While urban markets are experiencing some cooling, rural and recreational markets are thriving. This is particularly evident in areas like Mont Tremblant, Blue Mountain, and Revelstoke, where lifestyle appeal and investment potential remain robust. People love to invest where they play—plain and simple.

Government Policies and DMOs: Government initiatives, coupled with the efforts of Destination Marketing Organizations (DMOs) and Chambers of Commerce, are supporting tourism and regional development. These organizations play a critical role in promoting local attractions, events, and activities, which in turn bolster the real estate market. The BMVA, The Blue Mountains Chamber of Commerce, and Revelstoke Chamber of Commerce all support vacation rental companies within their ecosystem in diverse ways.

Revelstoke is quickly becoming a major player in the Canadian real estate market, driven by year-round attractions and significant developments. The opening of Cabot Revelstoke, a luxury golf brand renowned internationally, is set to further elevate the region’s profile, attracting highnet- worth individuals, investors, and golfers.

Mackenzie Village: Another significant development in Revelstoke is the Mackenzie Village project, a large-scale residential and commercial community transforming then local market. Mackenzie Village is designed to cater to both permanent residents and visitors, offering a mix of housing options, retail spaces, and community amenities. This development is expected to drive further interest in Revelstoke as a prime destination for both living and investment.

Revelstoke Mountain Resort: The resort, with the largest vertical drop in North America, remains a major draw for winter sports enthusiasts. Combined with heliskiing and cat skiing options, Revelstoke’s winter offerings are among the best in the world, driving demand for both short-term and seasonal rentals.

In the Blue Mountains, Ontario, the Blue Mountain Village Association (BMVA) serves as the key marketing body, playing a vital role in driving tourism, events, and overall market strength. The BMVA’s efforts are crucial in maintaining Blue Mountain’s status as one of Ontario’s top four-season destinations.

Event Promotion: The BMVA is instrumental in organizing and promoting a wide range of events throughout the year, from summer music festivals to winter carnivals. These events attract large numbers of visitors, boosting the demand for short-term and seasonal rentals.

Tourism Support: The BMVA’s marketing initiatives help showcase The Blue Mountains as a premier destination for outdoor activities, dining, shopping, and more. By promoting the region’s attractions, the BMVA helps to sustain strong tourism numbers, directly benefiting the local real estate market.

Market Resilience: Through its strategic initiatives, the BMVA has contributed to the resilience of the local real estate market, ensuring that The Blue Mountains remains a desirable place to live, visit, and invest. As I write this, I am getting my golf clubs ready for their 20th annual charity golf tournament later this September!

Property Valet’s expansion into Revelstoke underscores the growing importance of this market within the Canadian real estate landscape. With existing offices in Mont Tremblant and The Blue Mountains, the new office in Revelstoke allows Property Valet to offer comprehensive services in some of the most sought-after destinations in Canada.

Year-Round Rentals: All three markets—Mont Tremblant, The Blue Mountains, and Revelstoke—offer year-round rental opportunities, making them attractive to investors seeking stable, long-term returns. Property Valet’s expertise in vacation management ensures that owners can maximize their rental income while maintaining the quality and appeal of their properties.

Seasonal Properties: SeasonalProperties.ca, a platform dedicated to showcasing high-quality seasonal rental properties, meets the growing demand for specialized rental platforms catering to both property owners and renters seeking premium accommodations primarily in The Blue Mountains, with plans for growth in Quebec, B.C., and South Florida.

The Canadian real estate market, particularly in regions like Revelstoke, The Blue Mountains, Collingwood, and Mont Tremblant, offers significant opportunities for investors and property owners. The combination of strong tourism appeal, year-round rental demand, and favorable economic conditions creates an environment ripe for both short-term and seasonal rentals.

With Property Valet’s strategic expansion into Revelstoke and the continued support of organizations like the BMVA and the Revelstoke Chamber of Commerce, these regions are wellpositioned for sustained growth. Whether through property management, strategic advice, or promoting properties via SeasonalProperties.ca, Property Valet remains at the forefront, helping clients navigate the opportunities and challenges of real estate investment in Canada. E