Nelson

Lending in Nelson, BC

Most brokers know Nelson by its reputation: the “Queen City of the Kootenays,” famous for having more restored heritage buildings than anywhere else in the province. That reputation is well-earned, and it’s the character of the town that drives its economy and real estate market. This isn’t a place propped up by a single mill or mine; its value is tied directly to its identity as a magnet for arts, culture, and outdoor life.

The economic engine here is a mix of tourism and a steady flow of new residents. The population has grown over 5% in the last few years, with people drawn to the Selkirk mountains and the shores of Kootenay Lake. This includes a lot of retirees, who now make up over 20% of the population, alongside entrepreneurs and lifestyle-seekers chasing the hiking, biking, and skiing. This creates consistent demand from second-home buyers and people relocating permanently, which keeps the real estate market stable and provides a solid floor for property values.

When you look at the local numbers, you have to read between the lines. The median household income is $72,500, and the unemployment rate sits at 9.5%. On paper, that seems to clash with local property prices. What brokers need to grasp is that a huge amount of capital flowing into Nelson’s real estate comes from outside the local job market. It’s retirees bringing their nest egg from Vancouver, or remote workers earning big-city salaries. This context is essential for structuring a deal. The story behind the borrower often makes more sense than the local economic stats might suggest.

The housing stock reflects the town’s history. Just over half of the homes are single-detached houses, but there’s a significant inventory of duplexes (around 14%) and low-rise apartment buildings (20%). Because Nelson is tucked into a mountain valley right on the lake, there’s no room for endless suburban sprawl. This geography protects the value and desirability of the existing housing supply. It’s a market built on preservation, not speculative greenfield development.

From a lending perspective, Nelson is one of the most resilient markets in the Kootenays. Its unique character acts as a buffer against the volatility we often see in pure resource towns. The town’s appeal isn’t a passing trend, which gives us real confidence in our recovery position if a file ever goes sideways. For the right property and a borrower with a clear plan, Nelson is a community where we are comfortable lending up to a maximum LTV of 70.0%. It’s a market that rewards a deeper understanding, and we’ve been lending here long enough to have exactly that.