Tofino

Tofino is the end of the road, literally. Getting there is a commitment, and that self-selects a certain type of resident and investor. It’s a community built on a specific vibe—surf culture, rugged Pacific rainforest, and a deep-rooted Nuu-chah-nulth identity. The “Tuff City” nickname isn’t just for show; this is a place with a gritty, independent character shaped by a climate that has bucked regional warming trends. It’s a world away from a planned resort town.

From a lending perspective, the economic story here is straightforward: tourism. It’s the engine that drives everything. With nearly 28% of the workforce in accommodation and food services, Tofino’s economy is completely exposed to travel trends, fuel prices, and broader economic downturns. This isn’t a diversified employment base. The local stats paint a clear picture of this reality: a 12% unemployment rate and a median household income of $85,000. For brokers, this means the local population has limited capacity to absorb high-value real estate. The market relies heavily on outside money.

That’s the fundamental tension in Tofino’s real estate market. You have intense desirability driven by out-of-province and vacation buyers colliding with a local economy that can’t sustain it. The physical setting is a powerful draw, and being surrounded by Pacific Rim National Park creates permanent land constraints that keep supply tight. With about half the housing stock consisting of single-detached homes, the pressure on available land is immense. In a strong market, a property sells itself. A foreclosure would likely get picked up quickly by someone from the Lower Mainland looking for a lifestyle change or a second home.

But we don’t lend based on best-case scenarios. Our entire model is built on worst-case recovery. If the tourism sector takes a significant hit, the knock-on effects here would be immediate. Foreclosure timelines stretch, and finding a buyer with cash becomes much harder. The pool of potential purchasers shrinks to those unaffected by the local downturn—meaning you have to discount the price to attract them from other markets.

That’s why we’re cautious. We see the appeal, but we also see the concentration of risk in a single industry. While it’s a desirable place to own property, it’s a challenging place to recover capital in a recession. For deals in Tofino, our risk appetite is conservative. We will look at properties here, but we cap our exposure with a maximum LTV of 55.0%.