The Canadian federal government on Monday announced it is now setting a cap on the number of international students admitted to the country for two years to address the nation's housing crisis.
The cap is aimed in part at easing the soaring demand for housing in the country, which is currently facing a home affordability crisis.
Under the new measure, Canada would only be approving approximately 364,000 study permits this year. That is a 35% net decrease from 2023. It is also a sharp decrease from 2022, when over 80,000 students were in Canada. The limit for 2025 is still unclear and will be assessed at the end of the year, as announced by Immigration Minister Marc Miller.
The Canadian government will provide each province and territory a portion of the 364,000 study permits. The number provided to each province will depend on its population and current student intake. The provinces will ultimately be the ones to decide how to distribute the study permits across their colleges and universities.
What the New Policy Means for Foreign Students
The new measure will only apply to students in a diploma or undergraduate program. Those applying for study permit renewals will not be affected.
In addition, Canada is setting limits on post-graduate work permits for foreign students. Those pursuing master's or post-doctorate programs will be eligible for a three-year work permit.
The new policy will no longer grant work permits for students graduating from colleges operating under a public-private partnership model. Spouses of international students enrolled in other levels of study, including undergraduate and college programs, will also no longer be eligible for study permits.
What This Means for the Housing Market
Canada is now battling a housing affordability crisis, with home prices soaring to an average of C$750,000 ($550,000). Rent prices also increased by 22% over the last two years.
Some economists have linked Canada's home affordability crisis to a spike in immigration, further exacerbated by the slowing construction rates in the country that have not kept up with the unprecedented population growth.
It is unclear how the cap will affect Canada's housing market, but Sean Fraser, the country's housing minister, believes it will alleviate "some pressure" in communities taking in particularly large numbers of students.
READ MORE: Canada Mulls Capping International Students Amid Housing Crisis
