Is a federal cap on international students bringing relief to Windsor's rental market?

It's been nearly a year since the federal government announced caps on international student permits and a real estate broker and landlord in Windsor said he's seen slight improvements in his ability to match people in need of housing with rental units.

"Before this news came out, students had a hard time finding good rental places or for less rent. The students were spreading downtown, even going into the Walkerville area," said Aditya Soma, owner of Save Max WinCity Realty.

"But now, there are a little more properties available."

The cap, announced by Canada’s immigration minister in January 2023, limits the number of international students post-secondary institutions can accept.

Officials at the time said the policy aims to ease pressure on housing markets and public services, such as health care, that have been strained by the growing influx of international students.

While the cap applies nationwide, its impact varies by city, said Frazier Fathers, a researcher and consultant for Community Policy Solutions.

"I suspect a big urban center, like Toronto, Vancouver or Montreal, with multiple universities and multiple major employers, is still going to have high rental demands no matter what," Fathers said.

"But when you get into mid-sized cities like Windsor, Windsor isn’t so large from a housing market perspective. It’s going to have an impact to some degree."

Like many post-secondary institutions across the country, the University of Windsor has seen a decline in its international student population this year compared to last.

The university welcomed 4,284 international graduate students in the fall 2023 semester, but accepted just 3,052 this year — a drop of about 29 per cent, according to data provided by the university.

"In theory, that should alleviate some demand on rental housing," Fathers said, adding it’s too early to determine the long-term impacts of the cap.

Early indicators, however, suggest some changes.

According to rentals.ca, rental rates for a two-bedroom unit in Windsor have dropped seven per cent this year compared to last.

"So maybe there’s something in there, where international students were sharing a unit — two graduate students were coming, finding a roommate, sharing that unit, splitting that cost — and maybe there’s just a little less demand for that as a whole," Fathers said.

For 2024, Immigration, Refugees and Citizenship Canada (IRCC) limited new study permits to 360,000 — a 35 per cent reduction from the previous year.

In 2025, the cap will tighten further to 437,000 permits, a decrease of 10% compared to 2024.

This capped level is expected to remain in place through 2026.

The temporary nature of the cap has raised concerns that housing pressures could increase again in 2027 and beyond.

Soma, however, said there’s no reason to panic just yet.

"Many things can change. The government can change after one year. The policies can change. There are always some new changes coming in," he said.

He added that the slowdown in international student arrivals, paired with housing initiatives at all levels of government, could pressure owners of less desirable units to improve them to attract tenants.

"The City of Windsor, for example, has been giving additional support for people who are developing properties,” said Soma.

“They’ve been putting their efforts to increase the supply, which is a really good thing.”