Recent data reveals that Canada’s efforts to control immigration have had a significant impact on rental prices and employment stability. According to a report by TD Economics, the reduction in both temporary and permanent resident admissions has led to a 36% slowdown in projected rent increases and a nearly 1% decrease in unemployment rates.

Effects on Housing Market

The decrease in population growth, particularly in cities with higher proportions of temporary residents, has resulted in some relief in Canada’s housing market. Statistics Canada data shows that population growth in the first and second quarters of 2025 remained stagnant, primarily due to a decline in the temporary resident population resulting from recent government policy changes.

The impact of reduced immigration levels is evident in the rental market, with purpose-built rental price growth forecasted to be 3.5% between 2025 and 2027, compared to a potential 5.5% if immigration levels had not been restricted.

These projections are based on current interest rates and rental supply assumptions. The report suggests that maintaining higher immigration levels would have nearly doubled the historical average growth rate.