Canada to cap international student permits amid housing crunch

This situation has impacted Prime Minister Justin Trudeau’s standing, with polls indicating a decline in support for his government.

Canada on Monday announced a two-year cap on international student permits, saying that it would also cease issuing work permits to certain postgraduate students, effective immediately. The decision comes as the country grapples with record levels of immigration, identified as a key factor aggravating a housing crisis.

The cap is expected to result in approximately 360,000 approved study permits in 2024, a decrease of 35% from 2023, according to a statement from the immigration ministry.

Immigration Minister Marc Miller said the federal government would work with the provinces, which oversee the educational system, to apply the cap. He said the main reason for the cap is to protect students who attend colleges, which are often private-public partnerships, that provide inadequate services at high costs, but also to ease pressure on housing and services.

“Some private institutions have taken advantage of international students by operating under-resourced campuses, lacking supports for students and charging high tuition fees, all the while significantly increasing their intake of international students,” Miller told reporters.

“This increase is also putting pressure on housing, healthcare and other services,” he said, adding that fewer numbers would primarily help lower prices for rent.

The housing crisis, intensified by rapid population growth due to immigration, has strained essential services like healthcare and education, leading to an escalation in housing costs. This situation has impacted Prime Minister Justin Trudeau’s standing, with polls indicating a decline in support for his government.

In the third quarter of last year, the population grew at its fastest pace in more than six decades, with non-permanent residents – mostly students – increasing by 312,758, the most in more than five decades.

The Canadian Alliance of Student Associations (CASA), a student advocacy group, criticized the cap. CASA’s Director of Advocacy, Mateusz Salmassi, stated, “The biggest problem is that… there’s been announced a cap that is a reaction to the housing crisis,” adding that what is needed is more support and housing for international students.

On the contrary, the University of Toronto welcomed the announcement and said it would work with all levels of government on the allocation of study permits.

The changes are “focused on addressing abuses in the system by particular actors and are not intended to adversely impact universities such as ours,” the university said in a statement.