As 2025 draws to a close, many buyers and sellers across Ontario’s cottage country are taking a breath. It’s been a year of recalibration—interest rates stabilized, inventory shifted, and short-term rental (STR) regulations continued to evolve. While Muskoka remained a top-tier destination, savvy buyers began looking northward for better value, more space, and untapped potential.
Two regions stood out: Parry Sound and the Almaguin Highlands. Both north of Muskoka, these neighbouring areas quietly gained traction in 2025—and they’re poised to shine even brighter in 2026.
A Year of Reflection—and Redirection
Early 2025 brought cautious optimism. Buyers who had paused during the rate hikes of 2023–2024 returned with clearer priorities: affordability, rental income potential, and long-term enjoyment. But as Muskoka prices remained high and STR licensing tightened, attention turned to lesser-known regions that offered similar natural beauty without the same price tag.
Parry Sound: Waterfront Appeal with Investment Upside
Parry Sound has long been known for its rugged shoreline, Georgian Bay sunsets, and access to the 30,000 Islands. The District of Parry Sound spans far beyond the town itself, encompassing a diverse mix of inland lakes, forested acreage, and quiet cottage communities.
In 2025, this broader region gained momentum among buyers seeking waterfront properties with rental potential—but without Muskoka’s price tag. From Orville and MacDougal to Magnetawan to McKellar, buyers discovered better value, more privacy, and strong seasonal demand. Many properties offer year-round access, proximity to trails and amenities, and flexible layouts ideal for short-term rentals. With growing interest and evolving local policies, the district is becoming a smart choice for those looking to invest now and enjoy later making it a magnet for buyers seeking STR-friendly waterfront properties with strong guest appeal.
- Investor interest grew as buyers looked for cottages that could generate income during peak summer months and shoulder seasons.
- STR licensing discussions began to mirror those in Muskoka, prompting buyers to act before stricter rules take hold.
- Marina access, hiking trails, and proximity to Highway 400 made it a practical choice for both weekenders and long-term planners.
Almaguin Highlands: The Underrated Gem
Just northeast of Parry Sound and north of Huntsville, the Almaguin Highlands quietly emerged in 2025 as a haven for buyers seeking privacy, affordability, and four-season living. Stretching from Burk’s Falls to Sundridge and Kearney to Magnetawan, this expansive region offers a rich tapestry of inland lakes, forested acreage, and welcoming communities—many still flying under the radar compared to Muskoka.
Buyers were drawn to Almaguin for its untapped value: waterfront properties often listed at a fraction of Muskoka prices, with generous lot sizes and fewer bidding wars. The region’s appeal extended beyond summer—thanks to snowmobile trails, provincial parks, and reliable year-round access, it became a top choice for remote workers, retirees, and families seeking a slower pace without sacrificing connectivity.
Short-term rental interest also grew, especially around lakes with public access and towns offering basic amenities. While STR licensing remains less formalized than in Muskoka, buyers are increasingly mindful of community expectations and long-term sustainability. For those looking to invest now and enjoy later, Almaguin offers a compelling mix of natural beauty, rental potential, and lifestyle flexibility—all wrapped in a quieter, more personal cottage country experience.
- Prices remained 20–40% lower than comparable Muskoka listings, especially on lesser-known lakes.
- Year-round access and high-speed internet made it appealing for remote workers and early retirees.
- STR potential grew, particularly for properties near snowmobile trails, provincial parks, and family-friendly lakes.
Unlike more saturated markets, Almaguin still offers room to grow—both in terms of property value and lifestyle. Buyers here often have a long-term vision: rent now, enjoy later, and eventually retire in a place that feels like home.
What Buyers Learned in 2025
This year reinforced a few key lessons for cottage country buyers:
- Timing matters—but so does flexibility. Many successful buyers were those who acted early in the year or stayed open to lesser-known regions.
- STR income is possible—but not guaranteed. Licensing, guest experience, and seasonality all play a role.
- Lifestyle is the long game. Whether it’s a quiet lake in Almaguin or a bustling bayfront in Parry Sound, buyers who aligned their purchase with their values felt the most satisfied.
Looking Ahead to 2026
While no one can predict the market with certainty, early indicators suggest:
- Inventory may remain tight, especially for turnkey waterfront properties.
- STR regulations will continue to evolve, making compliance and community engagement more important than ever.
- Value-driven regions like Parry Sound and Almaguin will attract even more attention from buyers priced out of Muskoka or seeking a different pace.
Looking ahead, the signals are clear. With affordability, natural beauty, and increasing buyer interest, Parry Sound and Almaguin aren’t just on the map — they’re poised for growth in 2026 and beyond.
Thinking About a Move?
Whether you're planning to buy, sell, or simply explore your options, now is the perfect time to reflect on your goals and start planning for 2026. The Janssen Group can expertly guide you with local insight, market expertise, and a deep respect for the Parry Sound and Almaguin Highlands communities they serve.
Contact the local experts at The Janssen Group today to talk about what’s next—for you, and for cottage country.
