Rental Prices Decline Near Canadian Universities After Student Caps

Rental prices in Canadian cities with post-secondary institutions have decreased following the implementation of international student caps, according to new data from Rentals.ca. This change comes in response to a significant increase in the international student population, which nearly doubled from 2020 to 2023, creating a highly competitive rental market.

As of January 2024, the federal government introduced caps on international student admissions, leading to a notable shift 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.” The result is a more favorable environment for prospective student renters, who are experiencing less competition and finding more affordable housing options near their campuses.

Data indicates that the first seven months of 2025 saw a dramatic 69 percent decline in new international student arrivals in Canada compared to the same period in 2024. British Columbia and Ontario, where the majority of international students reside, have been particularly affected by this trend in the rental market.

Regional Rental Price Changes

In Ontario, the average rental price has dropped by 5.8 percent from January to July 2025 compared to the same months in 2024. British Columbia reported a similar trend, with an overall decrease of 5.4 percent. Specific cities within the province have experienced more significant reductions: Burnaby saw an 11.5 percent drop, Vancouver’s prices fell by 8.3 percent, and Victoria reported an 8 percent decrease.

Additionally, Rentals.ca noted a 39 percent reduction in the number of individuals responding to rental advertisements near post-secondary schools. This shift highlights the changing dynamics in the housing market as international student numbers decline.

Future Projections and Local Variations

The report from Rentals.ca suggests that the downward trend in the international student population may persist into 2026, continuing to impact rental markets across Canada. Despite this overarching trend, local variations exist. For instance, cities like Toronto have maintained relatively stable rental prices. This stability can be attributed to the high integration of student areas with surrounding neighborhoods. Conversely, Calgary, where international students represent a smaller share of total enrolment, has also seen robust rental prices.

As universities adjust to these new realities, the overall landscape of student housing continues to evolve. The ongoing changes in the international student population and rental prices will likely influence future housing strategies in cities across Canada.