Ontario’s rental market has hit a slowdown as international student enrolment has plunged.
Ontario has seen notably slow rent growth since May – a trend industry experts have previously pinned on increased housing supply.
However, the driving force may actually be on the demand side. This September, international student enrolment at Ontario’s postsecondary institutions fell to “about half of what it was” last year.
The 2024 cap on international student admissions slashed new study visas by 35%. Additionally, amid suggestions of tighter visa application scrutiny, many returning international students struggled to renew their visas in time for the fall semester, further dragging down enrolment figures.
The impact is particularly noticeable in student-dominated cities like Kingston, where rental demand has plummeted.
"We would get 25 to 50 inquiries per week in August," said Amélie Brack, leasing manager for Limestone Property Management in Kingston. "This year, it’s been crickets.”
In September, Kingston’s average rent for one-bedrooms fell 1% from the previous month and 2.4% year-over-year to $1,795. Two-bedroom rents dropped 3% MoM and 1.1% YoY to $2,185. Asking rents in Ontario as a whole fell 4.3% annually to an average of $2,380.
Looking ahead, international student admissions are set to drop another 10% in 2025. Meanwhile, the federal government will lower permanent resident targets each year, from 500,000 in 2024 to 365,000 by 2027.
With these sweeping changes to enrolment and immigration policy, the rental market may soon feel unfamiliar to property managers who have grown used to the constant demand and rising rents.
But it’s more of a return to historical norms after a few years of record-high newcomers – the new international student and immigration targets aren’t drastically different from those seen between 2000 and 2021.
Property managers across Ontario have successfully operated under these conditions before, and they’ll likely do so again.
More student housing headlines
Desperate for work, where will recent college grads move to? – PayProp blog
‘Matchmaking’ service launched for students who need affordable rental housing – INsauga
University of Niagara Falls welcoming 1,000+ new students; where are they going to live? – The Pointer
