Courtesy: CHAT Newsroom

By Angela Kazmierczak

Apartment prices increase and are likely to remain high

Jan 17, 2023 | 4:05 PM

MEDICINE HAT, AB – With inflation at a high, apartment prices have increased in the Medicine Hat area.

For renter Michael Strong, he is especially worried these prices are here to stay.

Strong’s been renting in Medicine Hat the last nine years and has been actively looking for an apartment for three months now. In comparison to his last apartment hunt in 2021 to now, he’s noticed changes in the market and in his health.

“It’s been hell trying to find a place that’s both affordable and pet-friendly, and if you think you’ve found a place that might be affordable, the landlords want you to pay an extra $40 per pet…Why not just the pet deposit?” said Strong.

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He says paying for the apartment itself, while on a fixed income due to his deteriorating health, is impossibly difficult.

“Just to be able to move in to some of these cheaper places that we found, in terms of looking for a place to live, we wouldn’t be able to afford like groceries, which those keep going up in price,” said Strong.

He finds that when grocery shopping, he’s constantly asking: “Do I need this? I shouldn’t have to ask that question when it comes to fresh vegetables.”

According to realtor Ryan Werre from the Atkinson Team, increased costs from inflation are why apartments, on average, cost 10 to 15 per cent more.

“Whether they are property taxes, utilities, insurance – all those things have gone up in the last year, so landlords are looking at their buildings and saying, ‘I don’t want to lose money on our assets,’ and their only lever is to jack the price up,” said Werre.

Werre says it is unlikely prices will drop in 2023 or anytime soon either. In fact, he says, they are likely to slightly increase before plateauing at the end of the year, and this increase might be particularly hard for some individuals.

“Some might be on a fixed income, so they don’t have the option to make more money and their expenses are coming up, so they are tight on a lot of renters right now,” Werre said.

The realtor recommends people lock-in on their lease if it’s a fair rate. This way landlords can’t charge more than agreed.

Still, for Strong, he thinks that despite the help he’s received, the government needs to place more effort into supporting renters.

“Community housing needs more support because I don’t think they get enough…I’ve also been on their list for the subsidy program, which would actually make a place more affordable, but there’s just not enough money to go around for people on that list,” he said.

Until then, Strong says he will continue looking for a place for him and his son.