Rental Prices Fall Near Canadian Post-Secondary Schools

Rental prices in Canadian cities with post-secondary institutions have seen a significant decline following the introduction of caps on international student enrollment by the federal government. This trend marks a notable shift in the housing market, particularly for student rentals.

According to data from Rentals.ca, the population of international students in Canada nearly doubled from 2020 to 2023, resulting in a highly competitive market for student housing. However, the federal government implemented caps starting in January 2024. The effects of these measures are now becoming evident, with a reported correction in rental prices.

Giacomo Ladas, associate director of communications at Rentals.ca, stated, “With fewer international students entering the country, we’re seeing a real correction in post-secondary housing markets. For the first time in years, student renters are finding more affordable listings and less competition for housing near campuses.”

The first seven months of 2025 have shown a staggering 69 percent decrease in new arrivals of international students in Canada compared to the same period in 2024. This decline has had a pronounced impact on rental markets, particularly in provinces like British Columbia and Ontario, which host the highest concentrations of international students.

Market Impact in Major Cities

In Ontario, the average rent has decreased by 5.8 percent when comparing January to July 2025 with the same months in 2024. British Columbia has experienced a similar trend, with an overall decline of 5.4 percent. Specific cities within the province have seen more dramatic drops: Burnaby reported an 11.5 percent decrease, while Vancouver experienced an 8.3 percent decline, and Victoria observed an 8 percent drop.

Additionally, the number of responses to rental advertisements near post-secondary schools has fallen by 39 percent. This shift suggests that the demand for student housing is diminishing as fewer international students arrive in Canada.

Projections indicate that the downward trend in the international student population may persist into 2026, which could further influence rental prices. The Rentals.ca report highlights how the reduction in student visas is shaping the overall market landscape.

Despite these trends, there are notable exceptions. In cities like Toronto, where student housing is integrated with surrounding neighborhoods, prices have remained relatively stable. Similarly, Calgary, which has a lower percentage of international students among its total enrollment, has not seen the same level of impact on its rental market.

Future Considerations for Universities

The decline in international student enrollment has broader implications for Canadian universities, which may face budgetary constraints as a result. As institutions adjust to the changing landscape, the focus on attracting students may shift, emphasizing both domestic and international markets in new ways.

In conclusion, the rental market around Canadian post-secondary schools is undergoing a significant transformation, primarily driven by the federal government’s caps on international student numbers. As the landscape evolves, both students and universities will need to navigate these changes carefully.