Immigration continues to be a hot topic in 2025, with significant implications for the rental market.
In an effort to ease pressure on housing and social services, Canada is scaling back its permanent resident targets from 500,000 to 395,000 this year, with further reductions planned for 2026 and 2027. Non-permanent residents will also make up a smaller share of the population, dropping from 6.5% to 5%.
Temporary foreign worker permits and international student caps are also being reduced, with no exemptions for graduate students.
Canada’s overall population is projected to shrink by 0.2% in 2025 and 2026 before rebounding with a 0.8% increase in 2027, according to Immigration, Refugees, and Citizenship Canada. The decrease in new arrivals is expected to reduce Canada’s housing supply gap by 670,000 homes over the next three years.
Lower housing costs could follow, offering relief to renters and buyers alike but potentially posing challenges to property managers’ and investors’ profitability.
On the other hand, reducing the number of newcomers could also unlock hidden rental demand. If housing prices drop, adult children may leave their parents’ homes and roommates could finally afford their own spaces – and they will expect housing experts like property managers to cater to their preferences and needs.
More rental market headlines
Why your next tenant may be a senior – PayProp blog
Ontario launching rebates for energy efficient home renovations and upgrades – CBC
Tenants group demands action as high rents persist despite rising vacancies – CTV News
