Canada’s housing market shifts, yet students still face barriers

According to an analysis by the global student housing data and advisory specialist BONARD, higher education enrolments in Canada are expected to be down more than 26% in September. The firm projects between 223,000 and 245,000 students will enrol. In January 2024, the federal government imposed a cap on the number of international study permits, citing a shortage of housing as a key concern. 

Federal government data indicates that advertised rents (for all properties, including student rentals) are declining due to increased supply. The Canada Mortgage and Housing Corporation (CMHC) said fewer immigrants and international students are factors contributing to falling demand. 

The agency points out that declines are particularly pronounced in two of Canada’s most popular cities for students. In Toronto, advertised rents on a two-bedroom unit have fallen by 3.7%. Vancouver has seen an even bigger drop of 4.9%. 

However, those who already have a rental unit may be facing challenges, according to CMHC. “Rent increases for occupied units reflect strong demand,” it said in a report last month. 

The higher rents for occupied units are striking. In the first quarter of this year, rents jumped 10.7% in Toronto compared to the same period in 2024. The fastest growing rental costs were in Halifax, which saw increases of 17.1% during the first quarter. 

International students are struggling to find housing that is safe and affordable, said Mary Feltham, chairperson of the Canadian Federation of Students. International students are most vulnerable because many are trying to conduct a housing search before they arrive in Canada, she said. 

“I know of international students who are accepted into Canadian universities, but are unable to find housing,” she told The PIE News.

“Both domestic and international students report struggling to find suitable housing. One student in my program is still on the residence waitlist, with no options for external housing found.” 

Feltham disputes the federal government’s view that Canada’s housing shortage is caused by international students. “There has been a reduction in international study permits being issued, a drastic reduction in student enrolment and yet there are still barriers to accessing housing.” 

Feltham said that one in four students have experienced homelessness during their studies, with some sleeping in their cars or staying with friends. 

Both domestic and international students report struggling to find suitable housing

Mary Feltham, Canadian Federation of Students

In one city, the Toronto suburb of Brampton, the municipality is working to improve the quality and affordability for renters – both students and working people. In June, the city council voted to expand its licensing of landlords. More than 20,000 international students live in Brampton, many of them from India. 

Since its launch last year, the program has issued more than 3,400 licenses and completed 1,900 investigations, uncovering hundreds of violations, said councillor Rowena Santos. 

“Residents want action on illegal and unsafe rentals, overcrowding and declining property standards,” said Santos. The new regulations will “support responsible landlords through education – not just penalties”.

She believes that Brampton licensing program could be a model for cities across Canada. “When rental housing is well-managed, everyone wins. With these reforms, Brampton is showing how to get it right.” 

Julia Oravec, chief product officer at BONARD, said there will continue to be strong demand for housing for domestic and international students in Canada in the coming years. “Canada is a strong study destination, no matter the challenges that we currently have in the student markets,” she said. 

Over the long term, she expects the number of students to bounce back. “We have observed renewed interest of various investor groups (from families to institutional capital in both Canada and abroad) to talk about student housing in Canada as the market to invest in,” she said.

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