Penticton

Penticton, BC

Penticton is one of the Okanagan’s most important markets for a simple reason: geography. The city is squeezed between Okanagan and Skaha Lakes, which puts a hard cap on sprawl. That built-in scarcity keeps property values stable. But the real driver here is lifestyle. People want to live in Penticton for the hot summers, the wineries, and the lakes. It’s a major destination for retirees and equity-rich buyers cashing out of the Lower Mainland, creating a deep and predictable well of demand. The climate backs this up—it’s a warm zone 7a with a long growing season, which is exactly the kind of environment that attracts the lifestyle and retiree demographic.

The city’s demographics tell the same story. The median age is 52, and more than 30% of the population is over 65. This isn’t a fleeting trend; it’s the foundation of the local housing market. These are typically well-funded buyers moving into the area’s single-detached homes, which make up about 40% of the housing stock. We also see strong demand for the nearly 30% of housing that is low-rise apartments, perfect for those looking to downsize. This constant flow of new, capitalized residents provides a solid floor for valuations and keeps the market moving.

Economically, Penticton is solid but not flashy. The employment base is anchored by steady sectors like health care, retail, and construction. Tourism is obviously a big piece of the puzzle, but that introduces a seasonal element we watch closely. The unemployment rate, currently at 8.4%, is a direct reflection of that seasonality and is a point of caution in our underwriting. It’s a manageable risk, but it’s a risk nonetheless. There are no major economic disruptions on the horizon, but we’re aware that any downturn in tourism or construction would be felt here.

So, what does this mean for lending? For us, Penticton is a top-tier market. The powerful combination of lifestyle appeal and a constant stream of retiree buyers means the real estate market is incredibly liquid. Good properties here just don’t sit on the market for long, even when the broader economy cools off. This quick resale potential is crucial for our risk model. It means that in a foreclosure scenario, which is always the worst-case we plan for, we’re confident we can exit the property quickly and protect our capital. That confidence is why we’re so active in this community.

If you’re a broker with a good client and a solid property in Penticton, we want to see the deal. The market fundamentals are strong, the demand is consistent, and liquidity is high. Outside of the Lower Mainland, this is one of the communities we have the most confidence in. This is reflected in our willingness to lend up to a maximum LTV of 70%. The local syilx Okanagan name for the area, snpintktn, means “The Always Place.” For a lender, that sense of permanence and long-term stability is exactly what we’re looking for.