Student housing crunch eases 

Students returning to campuses across Canada this fall are finding it easier to secure housing, thanks to an increase in supply and a decline in the number of immigrants and international students. 

“Significant progress has been made but it is far from mission accomplished,” says Thomas Davidoff, director of the University of British Columbia (UBC) Centre for Urban Economics and Real Estate. “It’s a relatively good time for student renters, although rents are still high.”   

Canada Mortgage and Housing Corporation (CMHC), the federal agency that tracks housing, reported that the vacancy rate for rentals nationwide was just 2.2 percent in 2024. However, in a mid-year rental market update published this July, CMHC noted that rental supply is growing and that vacancy rates are expected to rise in most major cities this year. Experts like Dr. Davidoff consider a rate of 3 percent to be a healthy level, allowing apartment seekers some choice in finding a place that is in good condition and reasonably priced.  

Although CMHC does not provide separate data for student rentals, the agency’s mid-year update noted that the stricter cap on international students is lowering the demand for rental accommodations, particularly in B.C., Ontario and Nova Scotia. Overall, advertised rents in Calgary, Toronto, Vancouver and Halifax declined in the first three months of 2025 by two to eight per cent compared to the same period in 2024. 

However, the agency notes: “While advertised rents have begun to ease, this hasn’t yet translated into lower rents paid by all tenants.” That’s because when the existing tenants move out of an apartment, landlords take the opportunity to jack up the rent for the incoming tenants. This increase in costs at the lower end of the rental scale mitigates the decreases in cost at the higher end.  

Students in Halifax still hard pressed 

This situation can be seen in Halifax, where despite the decrease in asking rents for unoccupied apartments, the rents of occupied apartments have surged. In the first quarter of this year, rents on occupied, two-bedroom apartments in Halifax jumped by 17 per cent compared to the same period in 2024.  

Alexina St. Pierre-Farrow is a student at NSCAD University in Halifax and the chairperson of the Nova Scotia branch of the Canadian Federation of Students. With half a dozen universities and several colleges, Halifax has a high demand for rental accommodations.  

“Finding safe and affordable housing is a huge challenge in Halifax,” Ms. St. Pierre-Farrow told University Affairs. “Sometimes students have to decide between paying the rent and buying groceries. … Some people think that the implementation of the study permit cap on international students has eased the housing situation for students, but in fact that’s not the case.”  

While her rental situation is currently stable, she previously lived in a unit that was hit by “renoviction.” That occurs when a landlord evicts a tenant to renovate the apartment. Once the improvements are made, the rent can be increased significantly. Ms. St. Pierre-Farrow could not afford the higher price and was forced to move.  

She believes the city of Halifax should focus more on ensuring that affordable housing is constructed for students and working people. “I wish this city would stop building ugly condo buildings that no one can afford,” she says.  

UBC puts efforts into residences, purpose-built housing 

With its location on a beautiful peninsula, the UBC is different from other big-city schools like McGill and the University of Toronto, which operate downtown campuses. UBC is a lengthy commute from central Vancouver.  

Andrew Parr, UBC’s associate vice-president, student housing & community services, says UBC recognizes that many students want to live on campus, even in their upper years. As such, the school has 14,000 residence beds.  

Nevertheless, there are more than 7,000 students on the residence waitlist. “Some of those on the waitlist live with their parents in the Lower Mainland and would like to avoid commuting and enhance their university experience,” Mr. Parr says. “Others come from across Canada and internationally and have an urgent need for accommodations.”  

If students try to find apartments in Vancouver, they face serious challenges – the vacancy rate is just 1.6 percent, one of the lowest in Canada. According to CMHC, the average monthly rent for a two-bedroom apartment in Vancouver was $2,173 last year. 

“The apartment rental situation is softening a little, but it’s still pretty crazy,” Mr. Parr says.   

UBC has added 6,000 beds over the past 15 years, but it has only made a small dent in the waiting list. As well, the university is working with private-sector landlords who have been constructing purpose-built student housing across the Vancouver area.  

One such company is GEC, which calls itself the largest off-campus student housing provider in Vancouver. In its six buildings, GEC can accommodate 5,000 students, offering services like furnished apartments, in-suite laundry and housekeeping.  

Ontario students compete for lower-rent housing 

It’s a story playing out across Canada in cities that have large numbers of students. In Kingston, Ontario, Queen’s University opened a new residence in 2022 – but its 4,940 total beds meet just a small fraction of the need. As a result, private-sector landlords have been busy constructing purpose-built student housing units just a short walk from campus.  

However, they aren’t cheap. Amber Peak, which houses more than 400 students, charges up to $1,400 per room in a shared apartment. Lower-priced accommodations are snapped up well in advance – students arriving this month without a place to stay can expect to pay more.  

Julie Brown, media relations manager for Queen’s, says the school employs off-campus living advisors to help students navigate their housing search and deal with landlord issues.  

Toronto is another city where rents on occupied units (as opposed to the advertised rent of unoccupied units) have jumped. CMHC reported an 11 per cent increase in the cost of a two-bedroom, occupied apartment in the first quarter of this year, compared with the same period in 2024. Still, Dr. Davidoff believes that the housing crunch for students is easing. “There is a huge glut of condos being built in Toronto. Some investors don’t know what to do with them once they are completed and so they rent them to students.” That could help explain why the advertised rent of unoccupied apartments in Toronto actually declined by nearly four per cent in the first quarter of 2025.  

Affordable housing tight in Quebec 

In Quebec, the non-profit organization UTILE builds affordable housing for students and tracks the market. “The situation is still very tight,” says spokesperson Maxime Pelletier. “The affordability crisis is still going on this year, although there are signs that things are moving in the right direction.”  

UTILE currently has 2,100 beds across the province and is constructing four buildings in Montreal that will accommodate an additional 970 students when they open in two years. However, that’s a small number compared to the total of 250,000 students in the province.  

“Most students rely on the private sector market for housing,” Mr. Pelletier says. “One of the challenges that they face is that they are often not in the city when looking for a place to live – so there is potential for fraud.”  

Nationwide student housing shortages persist 

Depending on the location, there may be municipal, provincial and federal incentives for the private sector to build off-campus student housing. The city of Edmonton is planning to take advantage of the CMHC Housing Accelerator Fund to support companies in constructing student housing downtown.  

“It’s a piece of Edmonton’s Downtown Action Plan to enhance the city’s downtown with more housing, amenities and economic activity,” City Councillor Anne Stevenson told University Affairs.  

“Having students study and live downtown isn’t just convenient for them – it also helps add vibrancy and vitality to the core of the city,” she says.  

Across Canada, there is still a long way to go, says Julia Oravec, chief product officer for BONARD, a firm that specializes in gathering data and advising on global student housing markets.  

BONARD monitors both off-campus and on-campus student housing in 25 Canadian cities. “During the decade from 2010 to 2020, more than 51,300 beds were opened,” Ms. Oravec says. “Looking at the data, beds have been added in the last decade but they still do not match the demand.”  

Developing more purpose-built student housing is vital for student safety, well-being and academic performance, Ms. Oravec argues. “It also benefits non-student communities who have housing freed up when students stay in student-designated rooms.”