FOREIGN STUDENT VISA CAP AFFECT RENTS
Immigration law
11 Mar
Addressing the enormous housing demand will be a gradual process that necessitates cooperation among all levels of government. "Since it has been overlooked for such a long time, it won't be resolved overnight."
The student visa cap is poised to put a dent in the pocketbooks of those who rely on renting out spare rooms and basements to international students. Imagine the plight of middle-class families who count on these students (and other newcomers) to foot their increasingly exorbitant mortgage bills—they're in for a rough ride.
Conversely, there's a silver lining - according to sources "in the know," the ones who'll breathe easier include young singles, folks living in more affordable neighborhoods, and low-income families renting in the same student-packed areas. Looks like someone's getting a break from the housing hustle!
Canada's new visa limits for international students might put a chill on the rental market frenzy and give rent prices a breather. However, it's like putting a Band-Aid on a moose—it'll help a bit, but we've still got a way to go in thawing out our housing affordability iceberg.
Imposing limits on student numbers and improving demand management could mitigate the speed at which rents rise. However, this approach may not lead to lower rents or increased affordability."
In order for rents to decrease, it is necessary to decrease demand and increase supply significantly, thereby raising rental vacancy rates above three percent. In 2023, Canada's overall rental vacancy rate plummeted to 1.5 percent, the lowest in 36 years, according to the Canada Mortgage and Housing Corp.
With the new cap in place, the rental market is bracing for impact, especially for international students and temporary foreign workers who predominantly rent rather than own homes. Landlords may need to adjust their strategies to attract and retain tenants amidst these new regulations, potentially reshaping the dynamics of renting in the process.
Well, the federal government finally showed up fashionably late to the party, but hey, better late than never! Their latest move to rein in foreign students is actually good news for the rental market. By cutting down on future demand, they're easing the rent frenzy. So, breathe easy — your wallet might just catch a break from those astronomical rent hikes!
According to The Canadian Press, over 900,000 foreign students held visas to study in Canada in 2023, with more than half of them possessing newly issued permits. On January 22, Immigration Minister Marc Miller declared a temporary restriction on foreign student enrollment for two years, resulting in a 35% reduction in new permits for this year. This decision establishes a maximum of 364,000 new three-year permits for Canada in the current year.
In 2025, we'll reconsider the cap on new applications, aiming to tackle schools and sketchy characters milking students for cash while flooding campuses with internationals, Miller said.
"Well, it's not about being picky; it's more like Canada got a student visa frenzy on our hands here. It's like someone turned on the tap full blast without checking if the sink could handle it! We're drowning in student visas, more than we have cozy corners to put them in. And voila, we've got a housing crisis that's been brewing longer than grandma's herbal tea. Slapping a cap on it won't magically make the problem disappear.
This could have a slight immediate effect, similar to easing pressure temporarily, but it will probably be minor and won't last long. Addressing this issue will need substantial efforts in constructing more housing, with a particular emphasis on making sure there are affordable and very affordable housing options available.
So, here's the deal: we're kind of stuck in a rental rut because we haven't been making enough purpose-built apartments. We've been putting all our eggs in the private market basket, forgetting about the cool stuff like co-ops, land trusts, and community housing. Back in the day, we used to rock at this, but now? Well, let's just say we've got a crisis-sized collection of oopsies on our hands.
Demand has expanded at a much faster rate than our capacity to meet it. Implementing demand-side measures like this cap can be done swiftly and have an immediate impact compared to increasing supply, which often requires years to achieve.
The visa cap won't make a splash unless a wave of expiring visas washes foreign students out of Canada, leaving landlords high and dry. Immigration, Refugees and Citizenship Canada couldn't deliver the details right away.
It might take a while for the market to catch up, given there's probably a hefty backlog of demand already out there. So don't hold your breath for rents to suddenly nosedive. Introducing a cap would help ease rental demand and put a bit of a leash on those soaring rent hikes.
While this might take the edge off demand, the supply side is still stuck in a pickle with not enough affordable housing units and rampant market speculation.
A good number of international students are bunking in rooming houses or basement digs, with some squeezing into apartments to cut housing costs,". "Because the housing system isn't geared up for the varied needs of international students versus other groups (like seniors or families expanding), there just aren't enough homes to go around for all the different family setups."
Well, in Ontario and especially Toronto, a bunch of renters are stuck paying crazy-high rent that leaves them scraping for cash like they're living in some kind of Monopoly game gone wrong. People are choosing between groceries or their meds, all because they're pouring every penny into rent. And don't get me started on the commute nightmares—they're spending so much time in traffic; they might as well rent a room in their car!
If they lose their job or have a health hiccup, it's like they're playing musical chairs with nowhere to sit. It's a mess out there: rent's up, incomes are flatlining, and finding a place with a discount feels like spotting a unicorn.
We must implement a robust strategy involving specific policies and substantial investments. This includes funding for social housing, government backing for non-profit housing initiatives, and rigorous tenant protections. Maintaining the current situation is unacceptable for the countless renters who face daily struggles to secure shelter.
Most international students flock to Ontario and British Columbia like seagulls to a beach picnic. While it won't turn our rental market upside down, we'll definitely feel a ripple in pricing. The real fix? Don't blame the students—let's crank up the housing supply, crank up the apartments, and crank up those purpose-built rentals instead.