Do international students and temporary foreign workers pay more than Canadian-born individuals in the rental market?

Wendy Kei, Feng Hou and Haozhen Zhang

Economic and Social Reports from Statistics Canada, Analytical Studies and Modelling Branch

Abstract: Amid growing concerns in Canada over housing affordability, questions have arisen about non-permanent residents’ experience in the Canadian rental market. Some media sources have indicated that non-permanent residents are disproportionately affected by the ongoing housing crisis. This study uses data from the 2021 Census of Population to examine whether international students and temporary foreign workers face higher rental costs than the Canadian-born population (non-immigrants) and longer-term immigrants (those who were admitted more than five years preceding the census year). It also explores the factors contributing to disparities in rental expenses among these groups. The study shows that, on average, international students paid 10% more in monthly rental costs per rental unit, while temporary foreign workers paid 21% more, compared with Canadian-born individuals living in the same urban area before adjusting for neighbourhood, dwelling and household characteristics. The differences in rental costs observed for temporary foreign workers relative to Canadian-born individuals dropped to 5% when comparing renters with similar household characteristics living in the same neighbourhood and in similar dwellings. The higher rental costs paid by international students within a given urban area (or neighbourhood) can be entirely accounted for by differences in dwelling characteristics, as international students were less likely than Canadian-born individuals to reside in subsidized housing and more likely to live in condominiums and newer buildings.

Keywords: international students; temporary foreign workers; rental cost; neighbourhood (search for similar items in EconPapers)
JEL-codes: J23 M21 (search for similar items in EconPapers)
Date: 2024-10-23
New Economics Papers: this item is included in nep-mig and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:stc:stcp8e:202401000004e

DOI: 10.25318/36280001202401000004-eng

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