SUPPLIED IMAGE Seniors are a big part of the rise in bankruptcy claims from Medicine Hat, and rent increases are playing a major role.
gslade@medicinehatnews.com@MHNGillianSlade
Many seniors are contributing to the numbers that have Medicine Hat leading the province in an increase in bankruptcies last year, and rent hikes played a part.
Medicine Hat has seen a 20 per cent increase in bankruptcies and consumer proposals compared to 2018.
“Seniors are one of our biggest increases as far as demographics go unfortunately,” said Randy Kobbert, licensed insolvency trustee with Meyers Norris Penny.
Some seniors are being hit with double-digit rent percentage increases, said Kobbert. One faced a 15 per cent increase in her complex.
Drew Barnes, MLA for Cypress-Medicine Hat, says he empathizes with those affected by the rising cost of living and downturn in the economy.
“It is distressing to see Medicine Hat leading in such a statistic. It’s clear that governments have failed in many areas.”
A Canada Mortgage and Housing Corporation report on Medicine Hat’s rental market each October shows the median rent increase between 1990 and 2000 was $75. In the next nine years, 2000 to 2009, rent increased $200, and between 2009 and 2019 another $200.
The largest rent increase took place in the past few years.
For three years starting 2009 the average rent was $650. By 2014 it had reached $750. It remained at $795 for both 2015 and 2016 before increasing to $800 in 2017 where it stayed through 2018. In 2019 it increased $50 to $850.
“It’s disproportionate with the labour market, with the level of unemployment,” said Kobbert.
Mayor Ted Clugston says he’s been hearing from residents about increased rent.
“Obviously there is a concentration of ownership in town,” said Clugston. “We are probably still the lowest rents of the major five … Red Deer, Lethbridge, Grand Prairie.”
Medicine Hat also has the lowest income.
“Absolutely,” said Clugston.
There have been requests for the city to bring in rent control.
“I would never support that frankly,” said Clugston. “I’m a firm believer in the market forces and supply and demand. If there is a profit to be made more units will be constructed.”
The fallout from capping rents would potentially mean the supply of rental accommodation would move beyond the borders of Medicine Hat, said Clugston. That could lead to a lack of units for rent and a loss of tax base.
“I do believe over time that supply … market forces will figure this out,” said Clugston, who believes one of the big attractions for seniors to this area is the “lower cost of living.”
Barnes says governments need to trust free enterprise to create wealth and provide jobs.
“Too often Albertans have been burdened with high taxes and utility costs,” claimed Barnes, though the overall taxation in Alberta is lower than all other provinces.
Clugston believes the federal government has a part to play with CPP and old age security, and Barnes agrees.
“The extra hardship on seniors and those on fixed incomes shows how inadequate CPP and old age are, emphasizing that all Albertans need access to better programs and a robust economy to provide for themselves and their families,” said Barnes.
Michaela Glasgo, MLA for Brooks-Medicine Hat, says she has raised concerns about housing affordability in Medicine Hat with the office of the minister for seniors and housing.
Kobbert says the lack of availability of subsidized (affordable) housing is a big issue with people on a waiting list for years.
Glasgo says the issue of wait lists cannot be eliminated by increasing spending alone.
“That is why our government has committed to partnering with non-profit organizations and the private sector to develop innovative approaches to support affordable housing in Alberta.”
Barnes says he will continue to inform the federal and Alberta government of the extra hardship and burden on southeast Alberta.
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