(CANADA) A steep drop in international student arrivals in 2025 is reshaping Canada’s rental market, with small landlords warning they may not survive the year without a rebound in demand. Federal policy changes that cap new study permits drove a roughly 70% decline in student entries, and approval rates fell to a historic 33%, leaving 88,617 fewer students in the country during the first half of 2025 compared with the same period in 2024.
For many property owners who’ve long depended on this steady tenant base, the math no longer works. As one landlord put it, “If there is no demand, we can’t operate.”
Policy changes and intent
Ottawa’s cap on study permits aims to cool the housing market and reduce pressure on rental supply. The policy took hold through 2024 and into 2025, tightening new permits and reducing arrivals further as the year progressed. The government has framed the cap as a short-term measure to stabilize communities and infrastructure while improving program integrity.
Details on the current rules, including intake management and permit caps, are available on the official Immigration, Refugees and Citizenship Canada (IRCC) website: https://www.canada.ca/en/immigration-refugees-citizenship/services/study-canada/provincial-attestation-letter.html.
The results have been swift:
– International student arrivals fell by about 70%.
– Approval rates dropped to 33%.
– There were 88,617 fewer students in the first half of 2025 versus the same period in 2024.
VisaVerge.com reports the cap has rippled through housing demand, especially in areas dense with private rentals and purpose-built student housing. Property owners who counted on move-in cycles tied to the academic calendar say they’ve cut marketing budgets, offered discounts, or loosened screening criteria to fill units.
Impact on landlords
Small landlords feel the effect most acutely. Many own a handful of units—often condos or basement apartments—near transit and campuses in Toronto, Vancouver, and Montreal. These owners structured portfolios around international students who preferred newer buildings and shorter commutes.
Key points for landlords:
– Historically, international students paid about 10% more than Canadian-born tenants; temporary foreign workers paid about 21% more.
– Landlords relied on reliable turnover and the ability to set rents each academic cycle.
– With fewer arrivals, listings sit longer and price growth stalls.
– Responses include renegotiating leases at lower rates, allowing mid-lease transfers, selling units, or pivoting to different tenant pools.
“We’ve never had a September with this many empty bedrooms,” said a Toronto landlord. “We used to fill a two-bedroom in a week. Now it’s a month, and we still get low offers.”
Some landlords are:
– Switching from short-stay, furnished sublets to longer, unfurnished leases for local workers.
– Converting to shared accommodations to spread risk.
– Preparing winter discounts to avoid prolonged vacancies.
Condo investors face higher mortgage carrying costs without the premium rents students paid. Several report moving from positive cash flow to breaking even—or experiencing monthly losses—within one renewal cycle.
Impact on universities and local economies
The policy has reduced pressure in tight rental markets but brought wider costs:
- Universities estimate nearly $1 billion in lost revenue.
- Over 12,000 job cuts across the sector.
- Reduced spending by students and staff hits local businesses (cafés, bookstores, service jobs) near campuses.
Universities have canceled programs and trimmed services to match lower enrollment. Those cuts can weaken a school’s attractiveness to prospective students, potentially creating a downward cycle that further reduces local housing demand.
Market variations and operator responses
The reset is uneven across Canada:
– Campus-adjacent neighborhoods (Toronto downtown campuses, Vancouver Broadway corridor, Montreal near major universities) show larger shifts—more listings and softened August/September rushes.
– Areas with fewer post-secondary institutions feel less pressure.
Student housing operators are recalibrating:
– Targeting domestic students from other provinces.
– Testing co-living arrangements for interns and entry-level workers.
– Offering flexible start dates to capture off-cycle arrivals.
Landlords report that furnished rooms near transit no longer command previous premiums; attracting domestic tenants or recent graduates takes more time and price flexibility.
What applicants and families should know
For international applicants:
– Fewer permits are being issued and approval odds are lower.
– Expect longer timelines and more document requests tied to school quality and capacity.
– Many applicants are being deferred or turned away.
Families planning support should:
– Budget for possible delays.
– If accepted, confirm housing early to avoid last-minute surprises in still-competitive areas.
Short-term outlook and scenarios
What happens next depends on:
1. How many study permits are issued for upcoming intakes.
2. How universities adapt their programs and services.
Possible trajectories:
– If schools stabilize programs and rebuild services, campus-linked housing demand could recover.
– If enrollment stays low, small landlords may continue converting units, selling, or exiting the sector.
VisaVerge.com analysis suggests any policy shift that changes the volume or timing of arrivals will show up quickly in rental listings, incentives, and turnover around major campuses.
“We built around students because they always came. Now we don’t know who we’re serving—or at what price,” said one Vancouver owner.
For now, owners are preparing for another year of uncertainty. Many are watching fall lease-up closely and preparing contingency plans if student numbers stay depressed into 2026.
Frequently Asked Questions
This Article in a Nutshell
Canada’s federal cap on new study permits, implemented across 2024 and into 2025, produced a sharp decline in international student arrivals—about 70%—and pushed approval rates to a historic low of 33%. That resulted in 88,617 fewer students in the first half of 2025 compared with 2024. The plunge has had immediate effects: small landlords in major university cities face longer vacancies, lower yields and increased mortgage pressure, prompting price cuts, tenant-pivoting and unit sales. Universities estimate nearly $1 billion in lost revenue and over 12,000 job cuts. Operators and landlords are experimenting with domestic recruitment, co-living, longer leases and winter discounts while monitoring fall intake decisions for recovery signals.
