Houston

Lending in Houston, BC

Houston is known as the “Steelhead Capital,” and for good reason. It’s a community in the Bulkley Valley built around its natural assets, sitting right on Highway 16. The massive fly rod downtown isn’t just a tourist stop; it tells you what drives the local culture. This is a place for people serious about the outdoors—fishing, hiking, and Nordic skiing. It’s a small, focused community, not a sprawling suburb, and that distinction is critical from a lending perspective.

When we look at Houston, we have to see past the scenery and focus on the economic fundamentals. The town’s economy rests on a narrow base of manufacturing and resource extraction. Combined, the manufacturing sector and the agriculture, forestry, and fishing industries account for 34.4% of all jobs. That kind of concentration creates inherent, cyclical risk. When the resource sector is up, things are fine. When it’s down, the impact is felt across the entire community. The local unemployment rate of 12.4% isn’t just a number; it’s a clear signal of this vulnerability and a key factor in our underwriting. Paired with a median household income of $84,000, it paints a picture of a local economy with limited resilience, which directly affects property values and resale potential.

The housing market reflects these economic realities. With a stable population of just over 3,000 and growth of only 2.0% since 2016, there is no significant demand pressure to drive up values. The market has limited depth, meaning a smaller pool of potential buyers if a property needs to be sold. Of the 1,461 private dwellings, most are single-detached homes as you’d expect. However, it’s worth noting that over 15% are movable dwellings, a type of collateral that adds complexity to our risk assessment. The town’s demographic profile, with a median age of 38.8, is relatively young, but with only 8.9% of the population holding a bachelor’s degree or higher, the workforce is tightly aligned with the local industries, reinforcing the lack of economic diversity.

Beyond the economy, the geography and climate also shape the market. Houston is in Plant Hardiness Zone 4a, which means long, cold winters. While perfect for the outdoor enthusiasts who call it home, this climate is a major deterrent for the broader retiree market or lifestyle buyers from milder regions. This shrinks the potential buyer pool even further. The town’s strong identity is a double-edged sword: it attracts a specific niche but limits its appeal to a wider audience, which is a primary concern when assessing resale risk.

We do lend in Houston, but our approach is conservative and reflects the risks on the ground. The combination of a concentrated, cyclical economy, limited market depth, and a niche buyer profile means that in a foreclosure scenario, disposition timelines are longer and costs are higher. Our entire model is built on protecting our investors’ principal, so our lending decisions are guided by a worst-case recovery analysis.

For these reasons, our maximum loan-to-value in Houston is 45.0%. This isn’t a judgment on the quality of the community, but a straightforward assessment of the economic realities of a small, resource-dependent town in the Northern Interior. We’re here for deals that make sense within that context.