Princeton

Princeton is a resource town, through and through. It’s a small community of under 3,000 people, built on mining and ranching—not tourism or tech. Located where the Similkameen and Tulameen rivers meet, its economy is as old-school as its heritage-themed downtown. It’s a working town with low population density and slow growth, not a fast-moving resort community. That distinction is critical for how we assess risk here.

The economic fundamentals demand a conservative approach. The numbers tell the story of a fragile, non-diversified economy. Unemployment sits at a high 11.0%, and the town’s largest employer is still the mining and resource sector, accounting for nearly 20% of all jobs. That creates significant exposure to commodity cycles and single-employer disruptions. The other main industries—retail trade, healthcare, and food services—primarily serve the local population and don’t bring in new money. While the median household income is $64,500, the low rate of higher education, with only 14.2% of residents holding a bachelor’s degree, reinforces the lack of a professional employment base to buffer against downturns.

The housing market and demographics reflect this economic reality. The housing stock is dominated by single-detached homes (66.2%) with a significant number of movable dwellings (16.0%), which tells you this market serves a local, blue-collar population without a lot of upward pressure on property values. The population itself is older, with a median age of 52.8 and nearly 30% of residents over 65. An aging demographic provides some stability, but it doesn’t fuel growth. It also means property turnover is slow, as there isn’t a steady stream of new buyers moving into town for high-paying jobs.

We understand the appeal. For retirees or anyone wanting an outdoor lifestyle without a resort price tag, Princeton has its draws. It has a hospital and basic amenities, making it a practical choice for its older demographic. But that lifestyle appeal doesn’t create a liquid real estate market. There isn’t a deep pool of buyers ready to jump in, which directly impacts our exit strategy if a loan goes sideways. In a default, we’re looking at a 6 to 8-month sales timeline and would expect to discount the price by 10-15% just to get it sold. Those carrying costs and potential losses are a major factor in our underwriting.

Because of these risks—the concentrated economy, the slow-moving market, and the extended timeline for foreclosure sales—our exposure in Princeton has to be carefully managed. For qualified properties, our maximum loan-to-value is 50%.