Immigration caps are contributing to lower asking rents in Canada, CMHC says

Just after a webinar with the Diversity Institute minimizing the link (StatsCan notes greater correlation, albeit relatively small, in larger cities than smaller centres, with interest rates being greater factor):

Canada’s caps on foreign students and new residents have contributed to reduced demand for rental housing and lower average asking rents in Vancouver, Calgary, Toronto and Halifax, according to a new study from the national housing agency.

Over the past year, the average asking monthly rent fell between 2 per cent and 8 per cent in condos and rental-only apartments – also known as purpose-built rentals – said the report released Tuesday by Canada Mortgage and Housing Corp (CMHC).

The drop was due to a surge in new condos and apartment buildings hitting the market along with limits on temporary foreign residents such as students and new permanent residents.

As of April, temporary residents accounted for 7.1 per cent of the country’s total population, according to Statistics Canada. That compared with the peak of 7.4 per cent in October of last year. 

“It is quite evident on the demand side that there have been signs of weakening,” said Tania Bourassa-Ochoa, CMHC’s deputy chief economist, adding that there were stronger rental declines in regions with slower population growth….

Source: Immigration caps are contributing to lower asking rents in Canada, CMHC says