Rental demand from international students will slow this year, but won’t fall: RBC

Published February 14, 2024 at 1:17 pm

RBC says the recently announced cap on new study permits won’t lead to an outright decrease in demand for rental housing from international students this year.

But a new report from the bank about the cap finds the expected increase in rental demand from international students could fall by about 50 per cent as a result of the policy.

Ottawa announced a temporary cap on new study permits over the next two years as it tries to get a handle on sharp growth in international student enrolments at Canadian post-secondary institutions.

The number of new visas handed out this year will be capped at 364,000, a 35 per cent decrease from the nearly 560,000 issued last year.

RBC says if the cap for this year is extended beyond 2025, it would lead to a decline in the number of international students in the country.

The report says that would relieve pressure on the rental market more meaningfully.