Ucluelet

Ucluelet isn’t Tofino’s understudy; it’s the working end of the peninsula. While Tofino’s brand is built on surf and open beaches, Ukee has a different feel, one rooted in its name, Yuułuʔiłʔatḥ—”people of the safe harbour.” That identity still holds true today. The town’s economy and its entire layout are oriented around that sheltered inlet, a stark contrast to the wild ocean on the other side. This duality is what defines the local real estate market.

The local economy has completely changed. It was built on fishing and logging, but now it’s driven by tourism and hospitality. The numbers don’t lie: accommodation and food services make up 18% of all local jobs. This shift from resources to tourism has made the economy more resilient, and it’s fueling serious growth. The population has jumped over 20% since 2016. This isn’t a sleepy retirement town; the median age is just under 40, and a massive 70.7% of the population is working age. These are the people servicing a high-demand visitor economy, supported by convenient access to Tofino’s airport. They form a stable core for the community year-round.

The housing stock still has that small-town feel, with single-detached homes making up over half of all dwellings. But the market is adapting to the growth. We’re seeing more duplexes, which account for over 10% of homes, and some low-rise apartment buildings. This diversification shows a market that is responding to the needs of the growing workforce and not just catering to the vacation home buyer.

For us, Ucluelet is a solid market, but one that requires a clear-eyed approach. The appeal is obvious. The stunning oceanfront scenery and access to the Wild Pacific Trail create a powerful lifestyle draw. This translates into strong and reliable resale demand, especially for well-positioned properties. However, we never forget that it’s on the outer west coast of Vancouver Island. In a default scenario, everything takes longer here. The buyer pool is smaller, and the timeline for foreclosure and eventual sale is stretched compared to Nanaimo or the Comox Valley. The market is also more exposed to the swings of seasonal tourism. These aren’t negatives; they are realities we have to price in. That’s why our maximum loan-to-value in Ucluelet is 60.0%. That number isn’t pulled out of a hat. It’s a calculated buffer that protects our investors’ principal from the specific risks of a remote, desirable coastal market.

It’s also critical to understand the local governance. The Yuułuʔiłʔatḥ (Ucluelet First Nation) is a self-governing modern treaty nation under the Maa-nulth Treaty. This directly impacts land use and development in the region, including on their nearly 5,500 hectares of Treaty Settlement Land. Any serious evaluation of a deal in this area has to account for this reality.

So yes, we are active in Ucluelet. We see the long-term value in its economic transition and its undeniable lifestyle appeal. But we lend conservatively here. We need the right property and the right borrower to make a deal work within our framework.