Ontario property managers face slow student rental market

It’s the second school year under Canada’s federal caps on international student permits, and property managers in student-heavy cities across Ontario report business is as sluggish as the first – in some cases, even worse.

In 2024, the federal government announced it would reduce international student permits by at least 35% to ease the country’s housing crunch.

But it’s individual housing providers with rental properties near campuses who are reportedly feeling the impact most acutely, particularly in areas like Ontario where international students make up a larger share of the student population.

Take Waterloo, for example. Rents within two kilometers of Conestoga College have fallen faster than the rest of the city. According to data from The Globe and Mail, the average two-bedroom near campus was $2,221 in July 2025, down 5% from the previous year. By comparison, two-bedroom rents elsewhere in Waterloo fell just 2.1% over the same period.

“People are definitely feeling the pressure because of these vacancies,” said Noah Koop, a property manager in neighbouring Kitchener. “To put all your eggs in one basket with a student rental was okay before, but now people are really scratching their heads.”

Landlords, Koop says, are responding to the lesser demand in a variety of ways: dropping prices, offering shorter leases, and even renting to tenants they might previously have considered a risk.

In London, student rental rates are down as much as 20% compared to last September, according to local property manager Michelle Teichroeb. She notes some landlords are opening their rentals to non-students, while others are sweetening the deal with incentives like furnished suites, offering the first month rent-free, or including utilities.

London real estate agent Paul Byers added that the situation is prompting some landlords to exit the student rental market entirely.

With little control over international student permit caps, property managers are left to get creative. Beyond price adjustments and incentives, the convenience of online, on-the-go rent payments can make units more attractive to tenants, student or otherwise.

More student rental headlines

Pros and cons of renting to university students – PayProp blog

This Toronto investment firm is filling the student housing gap – Storeys

New Canada study permit rules for 2026 announced with major changes – Immigration News Canada