A recent report has shown a renter’s market in Lethbridge, Alta., although there is some disagreement regarding this assessment. Rachele Preston, the vice-president of the University of Lethbridge Students’ Union, believes that while rent prices are relatively low, they are still too high for students who often do not work full-time during the school year. According to an April report from Rentals.ca, the price of a one-bedroom apartment in the city was $1,282, marking a 5.9% increase from the previous year. Additionally, two-bedroom apartments rented for $1,486 per month, reflecting a 7.9% increase in 2023. Many students at the U of L come from outside the city, and Preston emphasizes the need for more assistance to help them find affordable housing options.
The Alberta Real Estate Association reports that housing prices have surged in Alberta, including in Lethbridge where prices increased by 7.1% between February 2023 and February of the current year. The average price of a home in Lethbridge rose from nearly $352,000 last year to just under $377,000 this year, reflecting a 4.1% increase. Trevor Lewington, the CEO of Economic Development Lethbridge, attributes the high prices to a major supply and demand imbalance in the housing market. He notes that low housing starts in 2023 combined with a growing population have led to a tight supply, driving prices up. Despite the unexpected 7% increase in housing prices, Lethbridge ranked as the fifth city with the highest housing prices in Alberta, following Red Deer, Edmonton, Medicine Hat, and Calgary.
Rachele Preston emphasizes the challenges faced by students in finding affordable housing, particularly given that many rely on grants and loans to cover their expenses and do not work full-time during the school year. While the cost of rent in Lethbridge may be lower compared to other cities, it can still be prohibitive for students. Preston highlights the need for more support mechanisms to assist students in accessing affordable housing options. She also mentions initiatives at the provincial and federal levels aiming to improve housing affordability for post-secondary students, such as recent grants announced by the federal government specifically targeting post-secondary housing.
Despite the growing housing prices in Lethbridge, the city saw some of the lowest housing starts in its history in 2023, according to Trevor Lewington. Factors such as a supply and demand imbalance have contributed to the rising prices in the housing market. With a limited supply of new houses being built and a growing population, the housing market has become increasingly tighter, leading to higher prices. While the 7% increase in housing prices may have been unexpected, it underscores the need for addressing the available supply of housing in Lethbridge. The city’s housing market ranked fifth in terms of high prices in Alberta, indicating the challenges faced by residents in finding affordable housing options in the region.
In conclusion, the housing market in Lethbridge, Alta., is experiencing a surge in prices, which has implications for students and residents seeking affordable housing options. Despite being considered a renter’s market, rent prices, particularly for students, remain a significant challenge. Factors such as low housing starts, a supply and demand imbalance, and a growing population have contributed to the rising prices in the housing market. Initiatives at the provincial and federal levels aim to address housing affordability, but more support may be needed to ensure that students and residents can find affordable housing in Lethbridge. The unexpected 7% increase in housing prices underscores the importance of addressing the available supply of housing in the city to mitigate the ongoing housing affordability challenges.
