Today Canada's immigration minister announced a temporary cap on international student admissions. The spectacular increase in non-permanent residents across Canada since 2020 has been putting great strain on housing prices and especially rents. In many instances, international students have been jointly renting suites, rooms and literally even beds. This type of rooming house arrangement has forced rents very high in a short period of time. In turn, this has had all kinds of negative social implications.
For those investors and speculators in real estate that have been counting on a rent per head model of tenancy, take note. It appears that the federal government is finally getting serious about reigning in fake schools and backdoor immigration pathways through so-called diploma mills.
If you're a homeowner or investor in property that is reliant on the continuous flow of endless international students, it would be wise to stress test your pro-formas for a variety of future outcomes, in terms of rental demand and rental rate projections.
See BNN's article and video here, titled "Feds announce two-year cap on international student admissions".