Canada has become one of the most popular destinations for international students, attracting hundreds of thousands each year. With world-renowned universities, a welcoming multicultural environment, and pathways to permanent residency, it’s no surprise that young people from across the globe choose cities like Toronto, Vancouver, and Montreal to further their education. While this brings cultural and economic benefits, it also has a direct impact on the residential rental market in these urban centers.

Why International Students Choose Canada

Canada’s reputation for high-quality education is a strong draw. Institutions like the University of Toronto, McGill University in Montreal, and the University of British Columbia in Vancouver consistently rank among the top worldwide. Beyond academics, Canada offers safety, cultural diversity, and opportunities for post-graduate work permits, making it a strategic choice for students planning to stay long term.

According to recent data, international students now represent a significant portion of postsecondary enrollment. Many arrive with limited credit history or local references, which often leads them to rent apartments rather than purchase property or qualify for student loans.

The Demand They Create in Major Cities

The arrival of international students each academic year injects a surge of demand into the rental market. Most prefer to live near campus or in central neighborhoods with easy access to public transit, food, and services. This concentrated demand has a ripple effect:

• Toronto: With more than a dozen universities and colleges attracting global students, competition for rentals in downtown and midtown neighborhoods spikes each September. Micro-apartments and shared units see especially high demand.

• Vancouver: The University of British Columbia and Simon Fraser University attract thousands of international students annually. This influx tightens rental supply in areas like Kitsilano, Burnaby, and the West End, where vacancy rates are already among the lowest in the country.

• Montreal: Home to McGill, Concordia, and several French-language institutions, Montreal welcomes a diverse mix of international students. While rents are lower than in Toronto or Vancouver, the surge in demand still pushes up prices around the Plateau, Downtown, and Côte-des-Neiges.

Market Pressures and Rising Rents

Because students are often willing to pay premiums for convenience and proximity, landlords sometimes raise rents or prioritize student tenants over local renters. In cities where supply is already limited, this can create affordability challenges for long-time residents. Moreover, international students often rent in groups to share costs. While this helps them manage expenses, it also means multiple renters competing for the same limited stock of multi-bedroom units.

Benefits Beyond the Strain

Despite the pressures, the presence of international students also benefits the housing market. They bring reliable demand year after year, which encourages the construction of new purpose-built rental housing and student residences. Landlords often appreciate the stability, as international students typically rent for the duration of their studies and may renew leases for several years. In essence, the influx of international students to Toronto, Vancouver, and Montreal is reshaping the residential rental landscape. Their demand adds pressure to already tight markets, pushing rents higher and reducing vacancy rates. Yet they also contribute to cultural vibrancy and economic growth, and their presence encourages investment in new housing stock. For Canadian cities, the challenge lies in balancing these benefits with policies that ensure affordability for both international students and local residents.