Stewart

Let’s be clear about Stewart: it’s the definition of an end-of-the-road town. Situated at the head of the Portland Canal, it’s a place people choose for its dramatic, raw beauty and its deep isolation, not for its economic opportunity. The town’s identity is welded to its boom-and-bust mining past, and that history is visible everywhere, from the historic storefronts to the abandoned structures that dot the landscape. This isn’t a bedroom community or a burgeoning hub; it’s a remote outpost for a specific type of person.

The local economy is small and lacks diversity. The biggest employers are in construction and transportation, which together account for nearly 40% of jobs, followed by public administration and resource extraction. While seasonal tourism from things like heli-skiing and glacier viewing creates some activity, it isn’t a core economic pillar. There’s no single large employer providing stability here. This reality is reflected in the numbers: a 14% unemployment rate and a median household income of $84,000. The town is also aging, with a median age over 49. While the population of 517 is up nearly 29% since 2016, that’s growth from a very low base and doesn’t signal a major change in the town’s economic footing. The housing market is almost entirely single-detached homes, and it will likely remain exceptionally small and specialized.

From a lending perspective, Stewart requires a clear-eyed assessment of risk. The appeal is niche, which means the pool of potential buyers in a default scenario is incredibly shallow. You’re not selling to a commuter from a nearby city; you’re selling to another outdoor guide, a seasonal worker, or someone specifically seeking the off-grid lifestyle Stewart provides. This isn’t a market where you can expect a quick sale. Our analysis shows a forced sale could take eight to ten months and likely require a significant price reduction of 25-35% to attract a qualified buyer from such a limited pool.

Because of this low market liquidity and economic fragility, our risk tolerance here is minimal. We will consider deals in Stewart, but our exposure is capped. For any property in this community, our maximum loan-to-value is 35.0%. The equity position must be substantial enough to absorb the costs of a prolonged foreclosure and a heavily discounted sale. It’s a stunning part of British Columbia, but from a lender’s standpoint, it’s a file that demands an extremely conservative approach. We’re here to help borrowers with a lot of skin in the game, not to offer high-leverage loans.