CLARKWATCH: Follow news and updates regarding sanctions on Mayor Clark.

Vacancy rate in Medicine Hat sits below provincial average

Nov 28, 2017 | 3:39 PM

 

MEDICINE HAT, AB — Medicine Hat current vacancy rate is lower than the provincial average, according to the new report from the Canada Mortgage and Housing Corporation (CMHC).

The 2017 Rental Market Survey was release Tuesday morning. According to the report, Medicine Hat’s vacancy rate sits at 6.2 per cent, down from the Alberta average of 7.5 per cent. The survey was conducted in October.

“That’s primarily because there were more rental units in the marketplace this year,” said Lai Sing Louie, regional economist for the Prairies and Territories with CMHC. “Even though demand increased a bit, the increase in rental apartments helped push up the vacancy rate.”

Medicine Hat’s rate went up from 5.4 per cent in October 2016, according to the report. The report adds in Medicine Hat, there were a total of 2,371 apartment rental units in the city, up from 2,308 the year before.

Louie says an improved economic outlook in Alberta following the recession is impacting vacancy rates.

“For two years, oil and gas prices were quite low, and obviously Medicine Hat is an energy centre,” he said. “You fast-forward to 2017, and there has been an economic recovery going on.

“It may not feel like it for some people, because we are coming off a low level, but we are experiencing growth in Alberta.”

Louie says specifically in Medicine Hat, demand is up approximately six per cent in the resale market, and adds prices are beginning to firm up in that market.

Medicine Hat is also paying a lower average rent compared to Alberta. For a bachelor suite, the average rent is $656, below the provincial average of $823. The average rent for a one-bedroom apartment in Medicine Hat is $757 per month, well below the provincial average of $988, while a two-bedroom apartment costs an average of $842 per month in rent in the Gas City, compared to $1,188 through the rest of the province.

When the comparison shifts to a similar-sized city, Lethbridge residents are paying an average of $701/month for a bachelor suite, $838/month for a one-bedroom apartment and $937/month for a two-bedroom apartment. It’s vacancy rate is 5.1 per cent, down from 8.5 in 2016.

The full report can be viewed here.