Ontario Towns with a Booming Short-Term Rental Market

Ontario’s vacation towns are seeing steady bookings and resilient rates this year. Canada’s short‑term rental occupancy averages about 55% in 2025. That is a healthy baseline for many host markets. Canada’s short‑term rental revenue is on track for roughly US$1.92 billion in 2025, with growth forecast through 2029. Policymakers continue to watch supply and housing impact. Investors should verify local licensing before buying.

Niagara‑on‑the‑Lake

Why it’s hot: Wine country weekends. The Shaw Festival. High summer demand.

Performance snapshot: About 438 active Niagara-on-the-lake homes for sale. Occupancy near 41.8%. ADR around CA$280. Median annual revenue about CA$38,170. Year‑over‑year revenue up roughly 5.3%. Peak month is August; February is the slow point. Regulations are strict, so compliance is essential.

Investor angle: This is why “Niagara‑on‑the‑Lake homes for sale” are drawing buyers who want wine‑country income and appreciation potential. The STR income trend supports the thesis.

Simple take: Strong nightly rates. Seasonal swings. Tight rules.

The Blue Mountains (including ski‑adjacent areas)

Why it’s hot: Four‑season resort traffic. Ski in winter. Trails and the bay in summer.

Performance snapshot: About 633 active listings. Occupancy near 36%. ADR around CA$305. Average monthly revenue near CA$3,015.

Extra context: Canada’s ski markets offer solid value for guests and investor potential in 2024–2025. That supports demand in places like Blue Mountain.

Simple take: High ADR. Lower occupancy off‑season. Ski weeks drive spikes.

Niagara Falls

Why it’s hot: Global tourism engine. Summer surge. Year‑round draw.

Performance snapshot: Roughly 1,210 active listings. Occupancy near 52%. ADR around CA$194. Average annual revenue about CA$37,000. Seasonality is strong with August as the peak.

Rules to know: A Vacation Rental Unit (VRU) licence is required. Rules vary by zone. Advertising without a licence is not allowed. Do due diligence before you buy.

Simple take: Solid occupancy. Moderate ADR. Licensing required.

North Bay

Why it’s hot: Lake escapes. Summer families. Remote workers seeking quiet.

Performance snapshot: About 116 active listings. Occupancy near 62%. ADR around CA$210. Average annual revenue around CA$49,000. August is often the top month. City rules are generally permissive, but confirm details.

Simple take: Higher occupancy for a smaller market. Strong summer. Manage winter dips.

Comparison table: 2025 performance at a glance

Town/Area	Active listings	Occupancy	ADR (CA$)	Typical revenue	Seasonality note	Regulation snapshot
Niagara‑on‑the‑Lake	438	41.8%	280	Median annual CA$38,170; +5.3% YoY	Peak Aug; low Feb	High regulation; licensing and compliance key
The Blue Mountains	633	36%	305	Avg monthly CA$3,015	Winter ski peaks; summer secondary	Varies by local by‑laws; confirm before purchase
Niagara Falls	1,210	52%	194	Avg annual CA$37,000	Strong summer; August peak	VRU licence required; zone limits; ad rules apply
North Bay	116	62%	210	Avg annual CA$49,000	Strong summer lakeside demand	Generally permissive; verify specifics

How to pick your town

1) Confirm rules and taxes first

• Niagara Falls requires a licence and restricts by zone. Fines can apply.
• Niagara‑on‑the‑Lake is strict. Budget time and cost for compliance.
• Nationally, officials monitor STRs for housing impact. Expect evolving rules.

2) Stress‑test seasonality

• Niagara‑on‑the‑Lake peaks in August and bottoms in winter. Hold reserves for slow months.
• Blue Mountain’s ski weeks can make the year. Price and minimum stays accordingly.

3) Match property type to demand

• Multi‑bedroom homes often achieve higher ADR and fill rates when managed well. This can lift total revenue.

4) Lean into proven trip drivers

• Wineries and festivals lift NOTL bookings.
• Ski and four‑season resorts support Blue Mountain demand.
• Iconic attractions sustain Niagara Falls.

5) Underwrite with data tools

• Use revenue calculators and market dashboards to model ADR, occupancy, and cash flow before you bid.

Buyer watchlist for 2025–2026

• Baseline demand: Canada’s STR occupancy holds near the mid‑50s. That supports income in well‑managed homes.
• Value pockets: Ski markets offer strong guest value versus U.S. resorts, which helps keep nights filled.
• Rural momentum: Industry watchers expect rural and off‑grid locations to outpace in 2025, with revenue growth projections out of the gate.

On the radar: “Niagara‑on‑the‑Lake homes for sale”

• The town’s STR metrics are strong. ADR is high. Revenue trend is positive. That keeps investor interest elevated for “Niagara‑on‑the‑Lake homes for sale.”
• Focus on walkability to Old Town, proximity to wineries, and yard space for groups. These factors align with the area’s guest profile and can boost returns.

Method notes

• Figures reflect recent 12‑month periods ending in late 2025 where specified by source. They are rounded for readability and may vary by property, street, and management quality. Always verify with local data before purchase.

Bottom line

Four Ontario markets stand out for 2025: Niagara‑on‑the‑Lake, The Blue Mountains, Niagara Falls, and North Bay. Each offers a distinct mix of occupancy, rates, and rules. Match the town to your risk and seasonality comfort. Verify licensing. Underwrite with real numbers. Then move fast when the right listing hits the market.