Hudson's Hope

Hudson’s Hope

Hudson’s Hope is one of those places that’s more history than trajectory. It has deep roots as one of BC’s oldest European settlements—a fur trading post from 1805 on the Peace River portage route. That frontier character never really left; it just swapped furs for hydroelectric power. The town’s modern identity was forged in the 1960s with the construction of the W.A.C. Bennett and Peace Canyon dams. The place exploded from a few dozen residents to thousands, an “instant municipality” built to serve a single purpose.

That purpose remains its economic bedrock. The dams are not just part of the economy; they are the economy. Over 21% of the workforce is in the utilities sector, a massive concentration for a small town. There is no meaningful diversification. The other top industries—accommodation, food services, and retail—are small and exist primarily to serve the local utility workers and residents. This single-point-of-failure structure is a major risk. The town’s overall employment rate is also low at just 53.8%, signaling a lack of opportunity outside the core industry and a stagnant local job market. While the median household income of $81,000 seems solid, it’s almost certainly concentrated in the hydro sector, making the community’s finances brittle.

The real estate and demographic trends confirm this lack of dynamism. The housing stock is exactly what you’d expect in a northern industrial town: 75% single-detached houses and another 18% movable dwellings. There are virtually no multi-family properties, which speaks volumes about the lack of rental demand or new household formation. This isn’t a place people are flocking to. In fact, they’re leaving. The population has dropped over 17% since 2016 to just 841 people. Compounding the issue is a challenging demographic profile. The median age is a high 46.8 years, and nearly a quarter of all residents are over 65. A shrinking, aging population in a remote, single-industry town creates an exceptionally shallow buyer pool for real estate.

These factors—the concentrated economy, declining and aging population, and remote location—force us to be extremely cautious. Our primary concern is protecting our investors’ principal, which means we have to be realistic about our exit strategy in a worst-case scenario. In a market this small and illiquid, the timeline for foreclosing on and selling a property is extended, driving up costs and uncertainty. The limited number of potential buyers puts significant downward pressure on recovery values. We will consider deals here, but our exposure must be limited to reflect the risk. For any files in Hudson’s Hope, we are capping our financing at a maximum LTV of 45.0%. It’s a conservative position, but it’s one the market realities demand.