University cities across Canada are facing a potential rental market downturn following the government's decision to cap international student study permits. The new policy, aimed at alleviating pressure on housing, will reduce the number of new international students by 35% for the next two years. While the cap may slow down rental demand, experts believe it won't entirely fix the housing crisis, especially in cities like Toronto and Vancouver where rental markets heavily depend on student demand.
This cap is expected to reduce pressure on student housing, but it may not translate into a significant decrease in overall rental prices. Experts argue that the rental shortage is more about supply issues, which won't be solved by temporarily reducing demand from international students. Local students, along with domestic renters, are also facing housing challenges, which are only exacerbated by limited housing stock.
In Canadian real estate news for September 6, housing markets continue to see fluctuations. A recent report highlighted a significant property of the week: a luxury home featured in the market roundup. Such high-end listings reflect broader market trends where affluent buyers continue to have options, but affordability for average Canadians remains a challenge amid rising interest rates and stagnant wages.
As the government looks to adjust immigration policies, the housing supply shortage remains a critical issue that won't be easily resolved by capping student numbers. Instead, more targeted efforts to increase housing supply and improve affordability across the board are necessary.
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