Hat’s U-Haul ranking a sign of strong housing market

By COLLIN GALLANT on January 6, 2022.

cgallant@medicinehatnews.com@CollinGallant

Moving rental company U-Haul says Medicine Hat broke into its top 25 “growth areas” in Canada based on in and out trips in 2021, a stat that local real estate agents say is likely a true indication of a hot year in housing sales.

“Do-it-yourself” movers who rented vans or trailers bound for Medicine Hat or Redcliff rose 37 per cent last year compared to 2020. Going the other way, one-way outbound traffic jumped 25 per cent.

Overall, the net influx of customers was about five per cent, high enough to place the Hat area at No. 15 in the nation on U-Haul’s annual list of moving destinations.

Alberta rose three spots to claim the position as top province.

“There are initiatives in Alberta that are creating more job opportunities and attracting residents,” said Naga Chennamsetty, U-Haul’s vice-president for Western Canada. “In the last year, we have seen lots of movement into Alberta. More communities are developing in and around major cities. Not only that, but the Canadian Rockies are so accessible to residents here, and they offer a variety of recreational activities. Alberta is one of the best places to make a home.”

That sounds like a sales pitch from local economic developers and tourism providers, who have pushed the idea that lower cost of living, combined with remote work could be a boon for the local economy.

Final Medicine Hat and area real estate figures from 2021 show a one-third increase in total residential transaction compared to 2020, and even higher sales of semi-detached, apartment-style condos and townhomes.

That’s led to a five per cent overall price increase for single family homes, now costing on average $338,700.

Outgoing Medicine Hat board president Frank Devine said he would like to see further data, but believes the trend is caused by emigration back to the Prairies from British Columbia or to mid-sized urban centres from larger cities.

“A lot of people either retire or semi-retire to B.C. for the lifestyle and the weather,” he said. “But costs there have been rising for years and with all the trouble there with drought and fire and floods, I think many would consider moving back.”

As for Medicine Hat’s marketability to new residents seeking a change of situation or remote working, Devine said “I think that will only grow.”

Calgary, at No. 5, was the top destination for do-it-yourself movers in Alberta, followed by No. 8 Red Deer-Lacombe, Medicine Hat-Redcliff, then No. 24 Airdrie in the top 25.

Locales in Northern Ontario led the nation with North Bay and Sudbury at Nos. 1 and 3, respectively, with Belleville, Ont. at No. 2.

Alberta saw a 33 per cent increase in arrival traffic.

During the pandemic, customers generally moved from Central Canada to the Maritimes, likely in search of lower cost of property and living as well as lesser health concerns.

In 2022, however, “things are shifting closer to normal, we are starting to see that trend reverse,” according to Jake Spelic, a U-Haul vice-president. “Ontario is still the economic centre of Canada and offers a high quality of living, thousands of job opportunities and attractive salaries.

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