Hazelton

Hazelton’s identity is shaped by its location where the Bulkley River meets the Skeena. For thousands of years, this was a crossroads for the Gitksan and Wet’suwet’en First Nations, and that heritage remains the defining feature of the community today. It’s called the “Totem Pole Capital of the World” for a reason. The local culture, anchored by the Ksan Historical Village and the iconic totem poles in nearby Kispiox, is the main draw for visitors and the core of the town’s character. This isn’t a place chasing trends; it’s firmly grounded in a history that is still very much alive.

Don’t look for a mill, mine, or tech park here. The economy runs on cultural tourism and a heavy dose of public funding. Nearly 35% of the workforce is in healthcare and social assistance, with another significant chunk in education and public administration. This government and tourism-backed employment provides a stable floor, but it’s a narrow base. The lack of a diverse private sector means there’s little capacity to absorb economic shocks or drive significant wage growth. It’s a fragile stability that’s vulnerable to shifts in tourism trends or public funding cuts.

The numbers paint a clear picture of a small, remote market facing headwinds. The population has shrunk by nearly 18% since 2016, now sitting at just over 250 residents. With an unemployment rate of 17.4%, the pool of qualified local borrowers is limited. Demographically, it’s an aging community, with a median age of almost 50 and over a quarter of the population aged 65 or older. This creates a very thin real estate market with slow turnover. The housing stock is what you’d expect: almost 80% are older, single-detached homes, with virtually no duplexes, row houses, or modern apartment development. We don’t see a seasonal vacation market or a retiree influx creating demand here; it’s a tight-knit community for those who specifically value the rural, culturally immersive lifestyle.

This economic and demographic profile dictates our lending strategy in Hazelton. We’re comfortable lending in “towns without a stoplight,” but our approach has to be conservative and equity-focused. The combination of a declining population, high unemployment, and an aging demographic means market depth is a serious concern. If we have to foreclose, the timeline for recovery will be long and uncertain due to the limited buyer pool. For any deal in Hazelton, whether it’s a purchase, refinance, or debt consolidation, we need to see a significant commitment from the borrower. We cap our exposure at 50.0% LTV. The deal must be structured with a substantial equity position to offset the clear risks of a small, remote market with a narrow economy and challenging fundamentals.