March 24, 2025
Real Estate News
Recent data from Statistics Canada shows that while Canada’s overall population growth has slowed to a modest 0.2% in Q1 2025, a significant demographic trend is reshaping the real estate landscape.
Non-permanent residents—those arriving on short-term visas, such as students and temporary workers—now account for roughly 1 in 14 people across the country, a share that has more than doubled in just the past four years.
A New Era in Population Growth
Canada’s population now stands at 41.53 million as of January 1, 2025, reflecting slower quarterly gains compared to the rapid increases seen in recent years. Although annual growth has dipped to 1.8% from the previous peak of 3.2%, the changes are more pronounced when focusing on the non-permanent resident segment.
This group, which contributed significantly to the country’s earlier boom, experienced its largest drop since 2020, yet remains a key driver of change with an overall increase of 10.7% year-over-year.
Implications for the Rental Market
The dramatic rise in non-permanent residents—jumping from roughly 3.4% of the population in 2021 to about 7.3% in early 2025—has profound implications for landlords and property managers.
With this segment now representing nearly 3 million people nationwide, the demand for rental properties is evolving. Royal York Property Management notes that such shifts not only impact tenant profiles but also influence rental pricing, leasing terms, and long-term occupancy trends.
Economic Restructuring and Market Adaptation
Policymakers are grappling with the economic ramifications of this rapid demographic shift. The surge in non-permanent residents has contributed to a major restructuring of the housing market and the broader economy.
Royal York Property Management emphasizes that adapting to these changes is essential for both investors and tenants.
As Canada’s housing dynamics continue to evolve, staying informed and adaptable will be crucial. Royal York Property Management remains committed to guiding clients through these shifts, ensuring that properties not only meet current market demands but are also well-positioned for the future.
Source: Better Dwelling
