Immigration caps are contributing to lower asking rents in Canada, CMHC says

Globe and Mail

09-07-2025

Canada's caps on foreign students and new residents have contributed to reduced demand for rental housing and lower average asking rents in Vancouver, Calgary, Toronto and Halifax, according to a new study from the national housing agency.
Over the past year, the average asking monthly rent fell between 2 per cent and 8 per cent in condos and rental-only apartments – also known as purpose-built rentals – said the report released Tuesday by Canada Mortgage and Housing Corp (CMHC).
The drop was due to a surge in new condos and apartment buildings hitting the market along with limits on temporary foreign residents such as students and new permanent residents.
As of April, temporary residents accounted for 7.1 per cent of the country's total population, according to Statistics Canada. That compared with the peak of 7.4 per cent in October of last year.
'It is quite evident on the demand side that there have been signs of weakening,' said Tania Bourassa-Ochoa, CMHC's deputy chief economist, adding that there were stronger rental declines in regions with slower population growth.
The average asking monthly rent for a two-bedroom apartment in Vancouver was $3,001 in the first quarter of this year, a 4.9-per-cent drop from the same period in 2024. In comparison, the average asking rent increased 4.5 per cent from 2023 to 2024, according to the study.
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In Calgary, the average asking rent was $1,872 in the first quarter of this year, a 3.5-per-cent decline from the same period in 2024. That compared with a 17-per-cent rise in the previous year.
In Toronto, the average asking rent was $2,522 in the first quarter of this year, a 3.7-per-cent drop over the same period in 2024. That compared with a 3.8-per-cent increase in the previous year. And in Halifax, the average asking rent was $2,171, a decline of 4.2 per cent from 2024 compared with an 8.7-per-cent increase in the previous year.
For rental condos, which are typically owned by individual investors, the average asking monthly rent for a two-bedroom unit in Vancouver fell 4.8 per cent this year compared with an increase of 1.2 per cent in the previous year. In Calgary, the asking rent declined 3.6 per cent this year compared with a 10.7-per-cent rise in the previous year. In Toronto, the asking rent fell 1.7 per cent this year after a 0.5-per-cent decline in the previous year. And in Halifax, the decline was 8.3 per cent this year compared with an 11.7-per-cent rise in the previous year.
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The study said the cap on international students is influencing rental demand in British Columbia, Ontario and Nova Scotia. However, CMHC did not provide data for cities with a large proportion of post-secondary students such as London, Kingston and Kitchener in Ontario.
The study builds on a recent quarterly report from the housing agency and Statistics Canada that surveys average asking rents across the country and is designed to reflect current rental rates.
The government's other rental reports include rates for housing units that are already occupied, which skews the current state of the rental market.