Study says international students, foreign workers paying higher rents in Canada

Credit to Author: Canadian Immigrant| Date: Mon, 28 Oct 2024 14:54:37 +0000

A recent study from Statistics Canada reveals that international students and temporary foreign workers are often paying considerably more for rent than their Canadian-born counterparts in urban areas. This disparity in housing costs is driven by a combination of factors, including the newcomers’ choice of housing, proximity to transit, and limited access to subsidized housing, highlighting significant challenges for these groups in securing affordable living arrangements.

Higher rent for newcomers

According to the study, migrants with study permits are paying, on average, 10% more in rent per unit, while those on work permits are paying 21% more compared to Canadian-born renters. When adjustments were made for location, housing type, and household size, international students appeared to pay slightly less than Canadian-born tenants. However, temporary foreign workers still faced a 5% higher cost, suggesting a persistent premium on rent for this group even after accounting for these factors.

Preference for newer and downtown accomodation

International students and temporary foreign workers are more likely to live in newer buildings and condominiums than Canadian-born residents and long-term immigrants. The data shows that 32% of students and 33.9% of workers reside in condominiums, compared to only 15.7% of Canadian-born renters. The study points out that newcomers tend to choose urban locations near transit systems and educational institutions, often in high-demand areas with increased rental prices.

Lack of subsidized housing access

A further challenge for international students and temporary foreign workers is limited access to subsidized housing. Only 3.5% of international students and 3.1% of temporary foreign workers live in subsidized accommodations, compared to 10.5% of Canadian renters and 16.6% of long-term immigrants. This limited access to affordable housing, combined with high competition for rental units in urban centers, compounds financial pressures on these groups, many of whom are already balancing tuition and work permit expenses.

Cost differences across demographics

In 2021, international students and temporary foreign workers paid average monthly rents of $1,440 and $1,610, respectively. These figures are significantly higher than the $1,220 average rent paid by Canadian-born tenants. Additionally, a large proportion of these newcomers (41% of foreign workers and 33.5% of students) reside in Toronto and Vancouver, where rental costs are among the highest in the country. In these cities, international students and foreign workers pay 7% and 16% more in rent, respectively, than Canadian renters in similar neighborhoods.

The role of short-term renting and rent control

Newcomers, who are more likely to be short-term renters, often experience steeper rent increases. Ontario’s rent control regulations, which limit rent hikes, do not apply to units that change tenants frequently. As a result, rental units occupied by temporary residents tend to come back onto the market more often, allowing landlords to increase rent with each new lease, further raising housing costs for international students and temporary foreign workers.

Housing challenges amidst affordability crisis

This study underscores the need for more equitable rental options for temporary foreign workers and international students, who continue to bear the burden of high rental costs amidst Canada’s housing affordability crisis. The report highlights that while these groups are frequently blamed for contributing to the country’s housing issues, they are among the hardest hit by soaring rental prices, limited vacancies, and restricted access to affordable housing.

With the demand for affordable housing solutions growing, targeted support for newcomers could help create a more balanced and fair rental market.

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