Posthaste: Gen X snapping up cottages amid $1-trillion wealth transfer from baby boomers

Members of gen X, aged 43 to 58, are driving activity across the country and are behind 91 per cent of transactions, said Re/Max’s latest cottage trends report. That’s a marked change from previous years when the market has been driven by retirees, made up of baby boomers, aged 59 to 79, and their gen-X children.

The hunt for more affordable housing could be one factor behind gen-X’s buying frenzy, with prices in cottage country lower than what can be found in the city. But some of the demographic shift can also be attributed to baby boomers passing their money down to family as part of the expected $1-trillion intergenerational wealth transfer, Re/Max said.

Indeed, inheritance considerations are playing into people’s decision to own cottages. The opportunity to give recreational property to family is a leading motivator for 51 per cent of Canadians, including 47 per cent of gen-Xers, who own or plan to own a cottage, said a Leger survey conducted on behalf of Re/Max. It’s also the reason why 42 per cent of current recreational property owners are holding onto their estates. Others are moving to hand over cottages while they’re still alive, with 56 per cent having already, or planning to, put property in a beneficiary’s name.