Canada’s Immigration Changes Impact Housing and Jobs

Canada has recently experienced a slowdown in immigration, which is starting to alleviate pressure on housing, jobs, and public infrastructure following years of rapid population growth.

As per federal initiatives to reduce temporary and permanent resident admissions, the country’s population growth has significantly decreased from 3.2 percent in mid-2024 to just 0.9 percent in 2025. This shift came after policymakers recognized that the influx of newcomers had surpassed housing availability and labor capacity.

Economists have observed the immediate effects of this adjustment. Rent escalation, which averaged over 6 percent in 2024, is projected to drop to approximately 3 percent next year, particularly in Ontario and British Columbia, where international students and temporary foreign workers were concentrated. Reduced demand has also impacted condo sales and rental prices in major urban centers.

Furthermore, labor market strains have eased. Despite a net loss of around 40,000 jobs between July and September 2025, the unemployment rate has remained close to 7 percent instead of surpassing 8 percent, a scenario analysts predicted if immigration levels had stayed high.

Although the federal government aimed for 673,000 new temporary residents in 2025, with almost 557,000 arriving in the first half of the year, the primary reductions are expected in international student admissions, while the Temporary Foreign Worker and International Mobility programs are exceeding targets.

Even with these adjustments, immigration rates in Canada are still among the highest in the nation’s history, with an anticipated 395,000 new permanent residents this year, well above the average of 300,000 from 2015 to 2020. Experts emphasize the importance of maintaining a sustainable pace that fosters economic growth without further straining housing and employment systems.