Canada’s New Measures Aim to Cut 35% of Approved Study Permits in Response to Housing and Healthcare Strain.
In a bid to alleviate pressures on housing and healthcare, Canada has announced a two-year cap on the number of foreign students admitted to the country. The cap is expected to result in a 35% reduction in approved study permits.
In 2022, Canada hosted over 800,000 foreign students, a significant increase from 214,000 a decade earlier. Immigration Minister Marc Miller revealed the cap, stating that Canada aims to approve approximately 360,000 undergraduate study permits this year.
Each province and territory will receive a designated share of the total permits, determined by population and current student intake. The provinces will then decide the distribution across their universities and colleges.
The cap applies solely to students in diploma or undergraduate programs and will not affect those applying for study permit renewals. Additionally, as of September, work permits will no longer be granted to students graduating from colleges operating under a public-private partnership model, primarily found in Ontario.
Miller emphasized that the measures are not directed against individual international students but are intended to safeguard the “integrity” of the system and ensure future students receive a quality education.
The announcement coincides with growing pressure on the Trudeau government to address the increasingly unaffordable housing market. Home prices in Canada average C$750,000, and Canadian rent has risen by 22% in the last two years. Some economists link housing unaffordability to immigration-driven population growth, with Canada growing by over a million people in 2022, hitting a record 40 million.
The Canada Mortgage and Housing Corporation estimates a need for 3.5 million more housing units by 2030 to restore affordability. The cap represents a significant policy shift for Canada, traditionally relying on open immigration to address workforce needs. However, concerns have been raised by Canadian universities about potential losses and impacts on domestic students if the cap affects international student enrollment.
