City-owned utilities and housing costs are driving factors as Medicine Hat ranks tops in the province for affordability with its calculated hourly living wage of $18.50 by the Alberta Living Wage Network.--NEWS FILE PHOTO
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The Alberta Living Wage Network has calculated workers in Medicine Hat need to earn at least $18.15 per hour to cover basic expenses, the lowest living wage reported in 2025 among 21 Alberta municipalities.
Since 2022, Medicine Hat has ranked among the most affordable communities to live in the province, with its living wage increased over that time by $0.65, from $17.50 per hour, though $0.60 of that is since 2024.
“While certain factors impact overall affordability, such as population density, proximity to major metropolitan areas and local industry, Medicine Hat maintained a living wage below $20, despite being one of the larger cities in this year’s rankings,” reads a statement from Medicine Hat Economic Development.
The living wage rate is calculated each year by analyzing the cost associated with living in each participating community in the province, and represents the minimum wage a worker must earn to cover basic needs, housing, food, transportation, childcare and other essentials.
The rate also factors in the ability to participate in the community and live a “life with dignity,” as opposed to the province’s minimum wage, which last increased to $15 fin 2018 and is now the lowest in the country.
Several considerations are factored into calculating the living wage to ensure a wide range of situations are properly reflected for the general population. This means education and health-care costs, as well as expenses like cell phone utility bills and recreation, are considered.
According to the ALWN, three household circumstances are considered including a home with two parents and two children at $22.58, a single parent with one child at $19.43, or a single adult living alone at $15.24. This median works out to $18.15.
By comparison, other communities posted higher hourly living wage rates, including Lethbridge at $22.30 and Brooks at $22. Larger urban centres like Calgary posted a living wage rate of $26.20, and Edmonton matched Lethbridge at $22.30. The provincial average ranges between $20 and $25.
Jasper reported the most expensive hourly living wage rate at $31.80, followed by Airdrie at $29 and Calgary and St. Albert at $25.60.
Alberta Special Areas’ hourly living wage was calculated at $21.25, and High River rated in slightly higher at $23.40.
Top living expenses including food, clothing and footwear, shelter and transportation. Within the detailed information on Medicine Hat’s calculations the ALWN cites the city’s energy production as a discount for users compared to other municipalities.
Housing cost was one of the largest drivers behind increases faced by all Albertans, increasing by 10 per cent in 2025 across the province.
As of July 2025 the average price of a home in Medicine Hat costs $379.945, increasing by five per cent from 2024.
“This was one of the biggest factors driving affordability in Medicine Hat, even though the local real estate market has experienced significant activity over the last 12 months,” continues the statement.
Overall, the ALWN says Albertans are facing an affordability crisis and says Medicine Hat’s relatively low living wage rate doesn’t mean real wages are high, just that the costs of living are more manageable here than other municipalities across the province.
“The living wage isn’t about luxury – it’s about basic participation,” said the ALWN. “It represents the amount needed for individuals and families to live modestly, work with dignity and engage in their communities. Individuals earning below the living wage not only experience financial struggles, but this also has a negative impact on their mental and physical health and well-being.”
Across Canada, Medicine Hat also ranks top in most affordable communities after MoneySense rated the city as one of the top five most comfortable Canadian cities in September, out of 79 ranked based on the income needed to live comfortably.
