International Students Might be a Boon to Canada’s Student Housing Crisis

In this fast-paced saga of Canada student housing, questions have arisen over the impact of the influx of students on the country’s economy, especially revealing the vulnerability of Canada’s housing sector. In recent Canada housing news, however, sentiments regarding the ill effects of this influx have taken centre stage. But are the students at fault here, or are they helping the country’s housing market afloat?

In recent housing market news Canada, according to Anna Triandafyllidou, the Canada Excellence Research Chair in Migration and Integration at Toronto Metropolitan University - the popular sentiment may be projecting a biased outlook towards the international students’ participation in the Canadian housing crisis.

The common argument many have produced is that, particularly in the big three cities of Canada (Vancouver, Toronto, and Montreal), students from abroad arrive with high purchasing power as well as readiness to share their apartment with other flatmates, driving up the rent so much so that it becomes impossible for even a small family to afford. Canada student housing in the smaller cities has also seen similar trends where there aren't enough units available for either the students or local residents, as reflected in our earlier coverage of the shortage of student housing in Canada.

Trainfafyllidou, however, argues that despite this, students who are willing to pay more are often the most exploited, too. In addition, the housing crisis began even before the students were in the equation. Instead, the students may be helping the Canada student housing sector by opting for living arrangements that aren’t even in direct competition with the domestic renters. The recent reports in Canada housing news also show that the banks in Canada have begun their efforts to tame inflation by increasing borrowing costs, even allowing borrowers to extend their mortgage amortisations for a period as long as 55 years. 

Against Anna’s argument, however, this data seems to be heavily anecdotal. Despite that, it is important to note that many families across the country are renting out their basements as well as bedrooms to international students to make some money on the side. These families are often discovered through friends or extended family as they tend to rent out their spaces to people from familiar ethnicities or linguistic backgrounds. This rental sector is not an entity that is recognised by the government yet and plays an unaccounted role in being a safe haven for students struggling to house themselves. 

Triandafyllidou suggests some steps that can be taken to avoid making this a long-term solution, such as:

1. Urging universities nationwide to provide affordable housing as a part of the study permit application process.
2. Painting younger families with students by incentivising the local residents through tax breaks on the rental income they would make.
3. Providing student rentals and universities higher incentives to create more student accommodations at the provincial level.

While not a long-term solution, the unaccounted rentals that many students opt for can contribute towards keeping the Canadian economy afloat.