Nanaimo

Nanaimo, BC

As the second-largest city on Vancouver Island, Nanaimo is a major economic and transportation hub for the region. Its role as the “Harbour City” is functional, not just promotional; it’s the primary ferry gateway to the mainland. This creates a baseline of commercial activity that separates it from smaller, more seasonal coastal towns. The population is nearly 100,000 and has grown over 10% since 2016, showing consistent demand for housing and services. This isn’t a speculative boomtown; it’s a real, working city with the scale to support stable property values. The population density is over 1,100 people per square kilometer, indicating a well-established urban area rather than a sprawling rural district.

The local economy is the main reason we see Nanaimo as a strong market. It has successfully diversified away from its coal mining past. Today, the key employment drivers are health care and social assistance, which account for 16% of jobs, and retail, which makes up another 14%. These sectors provide a stable employment base that insulates the city from the boom-and-bust cycles common in resource-dependent towns. While the 8.4% unemployment rate warrants attention, the economic mix is solid. With construction, tourism, and education rounding out the top industries, Nanaimo has multiple sources of employment. A downturn in one sector is unlikely to cripple the entire local economy. The median household income of $75,500 further supports a healthy consumer base.

Nanaimo’s housing market is straightforward and low-risk. Single-detached houses make up over 51% of the housing stock, representing the type of simple, desirable collateral we prefer. The demand is organic and comes from a healthy demographic mix. The city is a magnet for retirees, with over 24% of the population aged 65 or older. This group, along with working families and professionals, is drawn by the Island lifestyle, coastal scenery, and practical amenities. The desirability is also increasing due to climate trends; the area has warmed enough to shift up an entire plant hardiness zone, extending the growing season and enhancing its appeal as a retirement destination. This isn’t just about “vibes”; it’s about tangible quality-of-life factors, like the fact that nearly half of all commuters get to work in under 15 minutes. These are the kinds of enduring draws that keep the resale market active and predictable.

In short, Nanaimo has the key fundamentals we look for in a market outside the Lower Mainland: consistent population growth, a diversified economy, and a location that people actively want to move to for reasons that won’t disappear overnight. The combination of a strong jobs base in stable sectors like healthcare and a desirable lifestyle keeps demand steady. This results in manageable foreclosure rates and predictable recovery timelines for lenders. We consider it one of the most straightforward and reliable markets on Vancouver Island. Based on these strengths, we are comfortable with equity deals in Nanaimo and are actively lending up to a maximum LTV of 70.0%.