Report shows Medicine Hat remains among most affordable urban rental markets in Canada

The report showed average rents in Medicine Hat declined 1.2 per cent from a year earlier.

One-bedroom units averaged $1,197, down 3.4 per cent from April and 1.2 per cent year-over-year, while two-bedroom units averaged $1,348, down 3.3 per cent from both the previous month and a year ago.

Medicine Hat also ranked among the country’s most affordable markets for purpose-built and condominium apartments, with an average asking rent of $1,321. Only Fort McMurray and Lloydminster posted lower averages.

Across Alberta, average asking rents fell 3.9 per cent annually to $1,766. Apartment rents in the province declined 4.7 per cent year-over-year to an average of $1,663.

The report points to a combination of increasing rental supply and slowing demand as key factors behind the national decline. It shows that more than 200,000 purpose-built rental units were under construction across Canada during the first quarter of 2026, a record high.

At the same time, it indicates that demand has softened due to higher youth unemployment and changes to immigration policies.

Canada had its first year-over-year population decline in 2025 since Confederation in 1867.

Statistics Canada data show it is driven largely by a reduction in the number of non-permanent residents and international students.

Nationally, rents have fallen 7.8 per cent since reaching a peak of $2,202 in May 2024, although they remain 22.1 per cent higher than pandemic-era lows recorded in 2021.

Among Alberta’s larger centres, Calgary’s average rent was $1,883 in May, down 3.6 per cent from a year earlier, while Edmonton averaged $1,605, a decline of 3.7 per cent.

The report found some of the strongest rent growth in Canada is now occurring in traditionally lower-cost provinces, including Saskatchewan and Manitoba, while rents continue to soften in larger urban centres such as Toronto, Vancouver and Calgary.

Despite the nationwide slowdown, Medicine Hat’s position near the bottom of the national rankings underscores its reputation as one of Canada’s most affordable cities for renters.

Urbanation president Shaun Hildebrand told the Canadian Press that the Canadian rental market is heading into the peak summer season under a weak economic backdrop, a decreasing population and record apartment completions, which are all factors keeping rent increases softer than what is typical for this time of year.

— With files from The Canadian Press

by Jesse Gill

Report shows Medicine Hat remains among most affordable urban rental markets in Canada

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