Canada’s Rental Market Is Finally Cooling Off – Here’s Why

Canada’s once red-hot rental market is finally starting to cool, according to a new report by the Canada Mortgage and Housing Corporation (CMHC). One of the key factors? A noticeable decline in the number of temporary residents living in the country.

This shift marks an important moment not only for tenants and landlords, but also for future immigrants, students, and foreign workers who have been concerned about Canada’s soaring cost of living — especially in major cities like Toronto and Vancouver.

What’s Changing in Canada’s Rental Market?

For the past several years, rental demand has outpaced supply across most Canadian cities. Record levels of population growth, driven primarily by temporary residents — such as international students, work permit holders, and refugee claimants — pushed vacancy rates to historic lows and rental prices to new highs.

But as immigration levels stabilize and temporary residents begin leaving the country — either due to expired status, changing policies, or return decisions — CMHC is seeing a moderation in demand.

According to the July 2025 CMHC report:

• Rental vacancy rates are rising slightly in key urban centres.
• Rental price growth is slowing, with some areas seeing flat or even declining rents.
• The number of active rental listings is increasing compared to the same time last year.

Why Are Temporary Residents Leaving?

There are several key drivers behind the trend:

• Stricter immigration controls in early 2024–2025 led to fewer new international student visas and capped study permits.
• Rising cost of living has made it harder for temporary residents to stay long-term without transitioning to permanent residency.
• Immigration policy changes, including shifts in Post-Graduate Work Permit (PGWP) eligibility, have caused many international students to reconsider their plans.
• A growing number of temporary workers and visitors have reached the end of their authorized stay.

What This Means for Future Immigrants

While this may seem like a setback for some, it could also present an opportunity for newcomers planning to immigrate or settle in Canada in the coming months:

✅ More affordable rental options may become available in popular cities

✅ Increased housing inventory will reduce competition for new immigrants

✅ Policy stabilization may bring clarity to application timelines and expectations

✅ Smaller class sizes for international students could mean better access to education and housing

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At the same time, Canada remains committed to welcoming immigrants and skilled workers — but the focus is shifting toward sustainable, long-term settlement rather than short-term spikes.

Planning to Immigrate to Canada? Timing Matters.

If you’re considering studying, working, or moving to Canada permanently, now is the time to stay informed and act strategically. With the market adjusting and immigration policies evolving, applicants who prepare early and seek trusted legal support have a major advantage.

Need Help Navigating Your Immigration Pathway?

Whether you're an international student, a skilled professional, or a future business immigrant — we can help. Our licensed team at Anyvisa is here to guide you through your options and build a personalized plan that fits your long-term goals.

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