Over 1 million new immigrants and non-permanent residents (most of whom are international students) came to Canada last year. This contributed to the demand for rental housing, particularly near universities and colleges, while the growth in rental supply has been insufficient to meet the demand. Rental increases are making it harder for students to find housing, as most students come from countries with lower incomes than Canada.
The shortage of housing available on and off campus has led to some universities putting caps on admissions to some programs. Although students are exacerbating the rental housing shortage, those same students are needed to address impending labor shortages in Canada as many workers are retiring earlier than expected due to the pandemic.
