Many small landlords across Canada are confronting new risks as the influx of international students — a key source of rental demand — sharply declines under the federal government’s revised immigration policies.
Under the government’s announcement, Canada will issue up to 437,000 study permits in 2025, representing a 10% cut from the 2024 cap. In the first half of 2025, just 36,417 new study permits were granted, compared with 125,034 in the same period last year — a drop of roughly 70%.
Related: Universities Canada Warns of Enrollment Collapse But Won’t Release Specific Numbers
Meanwhile, the total number of active study permit holders has also declined. According to ICEF Monitor, that number fell from approximately 1,023,785 in January 2024 to about 785,830 by July 2025 — a decline of more than 20%.
Observers note that neighborhoods with heavy dependence on student tenants may see greater vacancy and downward pressure on rents. That said, other cost pressures — such as higher interest rates, property taxes, and construction constraints — could limit how far rents can fall without jeopardizing landlords’ viability.
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