Fruitvale

Lending in Fruitvale, BC

Let’s be direct: Fruitvale is a bedroom community for Trail. With a population that has yet to hit 2,000 and growth of just 2% since 2016, it’s a small, stable market. Situated just 16 kilometres down the highway from Trail, its economic pulse is directly tied to the region’s industrial base, especially the smelter. There’s a story that the town started as a failed marketing scheme to sell orchard lots in a climate that couldn’t support them. It’s a fittingly pragmatic backdrop for the steady, unflashy community it is today. This isn’t a high-growth resort town; it’s a quiet place where people live while working elsewhere.

The economic data backs this up. The top employers are in manufacturing, healthcare, and retail, all primarily serving the needs of the greater Trail area. While a median household income of $83,000 looks okay on the surface, the individual median income is closer to $43,200, and a 7% unemployment rate points to an economy without its own momentum. Further, with only 11.7% of residents holding a bachelor’s degree or higher, the workforce aligns with a stable, trade-focused economy rather than a dynamic, high-growth one. For us, this signals predictability, but also a critical lack of the economic catalysts we look for in other markets.

Looking at housing and demographics, you see the same pattern. The community skews older, with a median age of 50 and more than a quarter of the population over 65. This demographic is well-served by the local housing stock, which is overwhelmingly made up of single-detached homes at over 72%. It’s a comfortable setup for retirees—especially given the area’s significant warming trend and long growing season, which adds to the lifestyle appeal. However, for a lender, this presents a risk. The market lacks diversity; there are virtually no row houses and very few apartments. When the current generation of homeowners decides to sell, who is the buyer? The shallow pool of younger, working-age residents and lack of diverse housing stock directly impacts market liquidity.

From a lending perspective, our entire model is built on a worst-case scenario exit strategy. In a town of under 2,000 people with a reliant economy, an aging demographic, and a shallow buyer pool, a foreclosure means a longer holding period. We have to be prepared for a patient sales process, factoring in the carrying costs and the time required to find the right buyer in a market with limited velocity. While Fruitvale is on our map and we see viable deals here, our exposure has to be managed conservatively. For these reasons, our maximum loan-to-value in Fruitvale is 55.0%.