Toronto, ON – October 28, 2025 – Canada’s student rental market is cooling rapidly as new federal limits on international study permits take effect, according to new data from Rentals.ca. After several years of record-breaking demand and limited availability, student renters are now seeing lower prices and more options near major post-secondary institutions across the country.
Rentals.ca data shows that cities with high international student enrolment, particularly in Ontario and British Columbia, are seeing the steepest rent declines. From January 2024, when the federal restrictions were first announced, to September 2025, average rents in Ontario dropped 5.8 percent, compared to larger declines in Toronto (8.1 percent), Kitchener-Waterloo (6.8 percent), and London (6.6 percent), which are each home to some of Canada’s largest post-secondary institutions. Likewise, in British Columbia, the provincial average fell 5.4 percent during the same period, with Vancouver down 8.3 percent, Victoria down 8.0 percent, and Burnaby down 11.5 percent.
Neighbourhoods surrounding campuses with high international enrolment are seeing even sharper declines between April 2024 to April 2025. Around McGill University, one-bedroom rents decreased by 4.4%, compared to a 1.3% decline citywide in Montreal. At the University of British Columbia, rents dropped 8.2% compared to just 3.9% across Vancouver, and near Dalhousie University in Halifax, rents fell 9.9% versus 8.7% citywide.
However, not all areas are affected equally. Despite a 6.4% decline in average rents across Toronto, listings near the University of Toronto saw a 7.3% increase, reflecting demand from non-student renters in the downtown core. Similarly, rents near the University of Calgary have remained stable, down just 0.5% compared to a 7.0% decrease citywide, due in part to lower international enrollment in Alberta, which was already below the new cap imposed by the federal government.
“With fewer international students entering the country, we’re seeing a real correction in post-secondary housing markets,” said Giacomo Ladas, Associate Director of Communications at Rentals.ca. “For the first time in years, student renters are finding more affordable listings and less competition for housing near campuses.”
Between 2020 and 2023, Canada’s international student population nearly doubled, placing significant pressure on the housing market. However, a series of federal restrictions on study permits introduced since January 2024, including higher financial support requirements, stricter post-graduation work permit rules, and a national cap on permits beginning in 2025, have led to a major slowdown. In the first seven months of 2025, the number of new study permits issued decreased by 39% year-over-year, while new student arrivals to Canada declined by 69%.
Lead volume, which measures the number of unique renters responding to listings, has also fallen sharply. Comparing the first seven months of 2025 to the same period in 2023, when the international student population peaked, national lead volume declined 28 percent, while areas surrounding post-secondary campuses saw a larger 39 percent drop. At Conestoga College in Kitchener, where international students made up more than 90 percent of enrolment in 2023, lead volume fell 67 percent over the same period.
For a complete breakdown of the data from Rentals.ca, read the full article or reach out to media@rentals.ca.