Trail

You can’t talk about Trail without talking about the smelter. It’s the first thing you see, and it’s been the economic anchor for over a century. This isn’t a resort town or a bedroom community; it’s an industrial city with a distinct, blue-collar identity that has shaped everything from its economy to its real estate. The community was built by generations of workers, many of them Italian immigrants who put down deep roots here.

That heritage is still visible, especially in “The Gulch,” where you see old European-style homes and terraced vegetable gardens carved into the steep hillsides along the Columbia River. It’s a clear sign of the working-class grit that defines the place. Those gardens aren’t just for show; the local climate, with its long and warm growing season, makes them incredibly productive. There’s a quiet pride here, not in being trendy, but in being tough. They call themselves the “Home of Champions” for a reason—sports, especially hockey, are woven into the town’s fabric, creating a stable, tight-knit community feel.

The data backs up this idea of stability. The population has grown slowly but steadily, and the demographics paint a picture of a mature community. The median age is nearly 50, and almost 28% of the residents are over 65. This isn’t a transient town; it’s a place where people stay for the long haul, which is a positive from a lending perspective. It suggests a predictable market and a strong sense of community ownership.

That stability is reflected in the housing market. It’s grounded in local employment, not speculation. The stock is dominated by single-detached homes, which make up over 70% of all dwellings. You see some smaller apartment buildings, duplexes, and row houses, but this is fundamentally a market for primary residences. There’s very little of the vacation property or high-turnover rental dynamic you see in other BC towns. People buy here to live here.

However, the town’s single-industry identity is the main factor in our risk assessment. While the Teck Resources smelter provides a high-profile employment base, any heavy concentration presents a risk. Digging into the numbers, you see manufacturing accounts for about 12% of jobs, but healthcare and retail trade are actually larger employers, providing some diversification. Even so, the town’s median household income is $68,000 and the unemployment rate sits at 7.9%. This points to limited economic resilience in a downturn. If the primary resource sector faces headwinds, the entire local economy feels it, which can extend property sale timelines in a foreclosure scenario.

For us, that profile warrants a conservative approach. We see solid opportunities in Trail for sensible, equity-based loans, but we manage our exposure carefully to protect our investors’ capital. We’re comfortable lending here, but our exposure is capped at a maximum LTV of 60.0%. It’s a core community for us—a classic example of a BC town built on industry and hard work. We just need to underwrite with our eyes wide open to the economic realities on the ground.