Peachland

Peachland, BC: a lender’s perspective

Peachland is exactly the kind of Okanagan community we understand. Sandwiched on the west shore of the lake between the larger hubs of Kelowna and Penticton, it’s a classic lifestyle town defined more by its geography than its local economy. It isn’t an economic engine in its own right; you won’t find a major mill, university, or tech park here. Instead, its economy is built on the services required by a population with a median age of 60. This demographic continues to grow, with the town’s population increasing by 6.7% since 2016. People are drawn here for the lifestyle, underpinned by a mild climate that has seen its plant hardiness zone improve to 6a, making it a haven for gardeners and anyone wanting to escape harsher winters.

From a lending perspective, the real estate fundamentals are sound, but they require a disciplined approach. The town is physically constrained by the lake on one side and steep hills on the other, which naturally limits new supply and helps support property values. The housing stock is dominated by single-detached homes, making up nearly 70% of all private dwellings, which we generally view favourably. However, there’s also a notable 16% share of low-rise apartments, likely catering to the strong retiree demographic looking to downsize. Demand across the board is consistent, driven by these equity-rich lifestyle buyers from across the country who want the lakeside view without the bustle of Kelowna. This creates a stable, predictable market.

That said, the local numbers warrant a cautious approach. The unemployment rate is high at 10.8%, and the overall employment rate is low at 42.7%—a direct result of the large senior population, which makes up over 37% of residents. The median household income is $81,000, but this figure is supported by a significant reliance on government transfers. This reliance, combined with an economy centered on retail, construction, and healthcare, signals some vulnerability. The main mitigating factor here is proximity. A borrower’s ability to find work isn’t limited to Peachland itself; the larger job markets of Kelowna and West Kelowna are a reasonable commute away, providing an important economic backstop that more isolated towns lack.

We see Peachland as a desirable, stable community with a solid resale market for well-maintained properties. The lifestyle appeal is undeniable and provides a floor for property demand—think beaches, local trails, and that classic “vacation lifestyle” vibe. This consistently attracts buyers with significant equity, which helps maintain market stability. However, the lack of a diverse local economy means we can’t treat it like a primary urban centre. It’s a market that requires a healthy equity position from the borrower to mitigate our risk.

For these reasons, our maximum loan-to-value in Peachland is 65.0% LTV. This provides an adequate buffer to protect our investors’ capital in a foreclosure scenario, accounting for the sales timelines and potential price softness of a smaller, retirement-focused market. We’re comfortable lending here on the right properties for the right borrowers, but this isn’t a market for pushing leverage. It’s a place for well-capitalized deals.