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Economic Viewpoint

From Campus to Community: Why Student Housing Shortages Should Worry All Canadians

September 3, 2024
Kari Norman, Economist • Randall Bartlett, Senior Director of Canadian Economics
  • In recent decades, the demand for higher education in Canada has surged. Many students, particularly first-year and international students, prefer living in purpose-built student accommodation, yet residence beds were only available for about 1 in 10 students.
  • Living in off-campus housing is often unaffordable for students. And with very low rental vacancy rates in most cities, available spaces can be hard to find. This lack of affordable housing is contributing to students graduating with heavy debt loads that impact their futures.
  • But insufficient student accommodations should worry all Canadians. We estimate 1.2 million students rent in the communities around their post-secondary institutions. This can decrease availability and drive up rental prices for everyone, particularly affecting low-income families and young adults.
  • Investors can often charge students—who pay by the room—more than they could get for the same space rented to a single family. Thus, investors may outbid would-be homeowners, driving up real estate prices as well.
  • A lack of safe and affordable housing can also deter potential international students from pursuing post-secondary education in Canada. This can have the unintended consequence of reducing the pool of skilled workers our country needs for future economic growth.
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.