Student Housing in B.C. Hit Hard by Drop in Foreign Enrolment

In 2022, Thompson Rivers University (TRU) in Kamloops didn’t have enough rooms for students. The school had to bring in a 113-bed workcamp from northern B.C. as a quick fix. Now, less than three years later, TRU is thinking about closing a 305-bed dormitory.

This big change is happening because fewer international students are coming to Canada. “The international demand has tapered right off because of the federal changes,” said Matt Milovick, TRU’s vice-president of administration and finance. He added, “The dramatic decline for international applicants is really going to start to be felt this fall and next fall.”

In 2024, the federal government began capping how many study permit applications it would process. A January 2025 update said this rule has cut international student numbers by about 40 per cent. It also said the policy helped ease pressure on local rental housing.

This year, the government plans to issue 437,000 study permits — 10 per cent less than last year. In a May speech, King Charles III shared that Canada will lower the number of temporary foreign workers and students to under five per cent of the total population by 2027. These changes are having a clear impact on schools and student housing.

Schools Adjust and Builders Step In

Some universities are now rethinking their housing plans, while others are still building. Andrew Parr at the University of British Columbia (UBC) said interest from developers is growing. “Private-sector investors and developers are very bullish about student housing these days,” he said.

In Surrey, North Vancouver’s Pure Multi-Family Group and Global Education Communities Corp. are planning a $330 million “education mega centre.” It will include a 49-storey tower with rentals near SkyTrain and a Simon Fraser University campus. Other schools, like Capilano University, are finishing new housing on their own campuses.

New Ideas and Funding Challenges

Not all schools can afford to build new housing. At Capilano University, a new 362-bed dorm is expected to open soon. “It looks like we’ll be able to manage on a functional basis,” said Daniel Levangie, associate vice-president of student success, “where the cost for students balances out effectively with the cost for us to operate it.”

Some schools are trying new ideas. Kwantlen Polytechnic University (KPU) has no on-campus housing, so it partnered with a company called SpacesShared. The service matches students with older adults who have extra rooms. “We’re looking to build our inventory of hosts and firm up more matches for our students,” said Zena Mitchell, vice-president of students at KPU.

Students Still Face Tough Conditions

Even with fewer foreign students, the need for good housing hasn’t gone away. A Statistics Canada report said international students paid 10 per cent more in rent than Canadian-born students in the same areas. Many lived in newer or shared buildings, or in crowded spaces.

In Vancouver, 29.2 per cent of international students lived in “unsuitable” homes, compared to just 15.4 per cent of Canadian-born students aged 18 to 24. Students from India had it the hardest — over half lived in housing that was too crowded. “As we move those numbers down, there’s certainly going to be an implication for student housing,” said Andrew Ramlo from Rennie & Associates.