A groundbreaking study by Statistics Canada researchers Wendy Kei, Feng Hou, and Haozhen Zhang has revealed significant disparities in rental costs between non-permanent residents and Canadian-born renters. Using data from the 2021 Census of Population, the study highlights how international students and temporary foreign workers (TFWs) face higher housing costs compared to Canadian-born individuals and long-term immigrants.
Key Findings
Higher Rental Costs for Non-Permanent Residents
- International Students: On average, international students paid 10% more for rent than Canadian-born individuals in the same urban areas.
- Temporary Foreign Workers: TFWs faced even steeper costs, paying 21% more, which decreased to 5% more after adjusting for neighborhood and dwelling characteristics.
- Canadian-Born Renters: Canadian-born individuals had the lowest average rental costs, reflecting their access to more affordable housing options.
Average Monthly Rental Costs (2021)
| Group | Average Monthly Shelter Costs (CAD) |
|---|---|
| International Students | $1,440 |
| Temporary Foreign Workers | $1,610 |
| Canadian-Born Renters | $1,220 |
| Long-Term Immigrants | $1,330 |
| Recent Immigrants | $1,510 |
Disparities in Housing Choices
Dwelling Characteristics
- Subsidized Housing: Only 3.5% of international students and 3.1% of TFWs lived in subsidized housing, compared to 10.5% of Canadian-born renters.
- Newer Dwellings: A significant proportion of international students (27.8%) and TFWs (25.9%) lived in homes built within the last 10 years, compared to 13.6% of Canadian-born renters.
- Condominiums: International students (32.0%) and TFWs (33.9%) were more likely to reside in condos, which typically have higher costs, compared to only 15.7% of Canadian-born renters.
Location and Proximity
- Urban Areas: Over 33% of international students and 41% of TFWs lived in Toronto or Vancouver, cities known for high rental costs.
- Downtown Living: A higher percentage of international students (25.8%) and TFWs (22.3%) lived downtown, compared to only 11.7% of Canadian-born renters.
Dwelling Maintenance
- A smaller share of international students (19.4%) and TFWs (17.6%) lived in homes requiring repairs, compared to 30.7% of Canadian-born renters, indicating their preference for better-maintained homes.
Why the Disparities Exist
- Limited Access to Subsidized Housing: Non-permanent residents are underrepresented in subsidized housing programs, which offer lower rental costs.
- Concentration in Expensive Markets: Many non-permanent residents reside in urban areas like Toronto and Vancouver, which have the highest average rental costs.
- Housing Preferences: International students and TFWs are more likely to live in newer and better-maintained homes, contributing to higher costs.
Policy Implications
The study underscores the need for targeted policies to address the housing challenges faced by non-permanent residents. Recommendations include:
- Expanding Subsidized Housing Access: Include international students and TFWs in subsidized housing programs.
- Promoting Affordable Housing: Incentivize the construction of affordable rental units in high-demand urban areas.
- Support Services: Provide information and resources to help non-permanent residents navigate the rental market.
Key Insights from Regression Models
Using advanced regression models, the study further analyzed rental costs by adjusting for variables like neighborhood, dwelling condition, and household size. Key findings include:
- International students’ higher costs were largely due to their preference for condominiums and newer buildings.
- Even after adjustments, TFWs paid 5% more than Canadian-born renters for similar dwellings.
- Proximity to transit and downtown living significantly influenced rental costs for non-permanent residents.
Conclusion
The study highlights a critical issue: international students and TFWs face disproportionately high rental costs, driven by limited access to affordable housing and concentration in high-cost markets. As Canada continues to rely on non-permanent residents to fuel its economy, addressing their housing challenges will be essential for ensuring their successful integration and well-being.
Sources: Statistics Canada, 2021 Census of Population.
Key Data Summary Table
| Metric | International Students | TFWs | Canadian-Born Renters |
|---|---|---|---|
| Average Monthly Rent (CAD) | $1,440 | $1,610 | $1,220 |
| Living in Subsidized Housing (%) | 3.5% | 3.1% | 10.5% |
| Living Downtown (%) | 25.8% | 22.3% | 11.7% |
| Living in Condominiums (%) | 32.0% | 33.9% | 15.7% |
| Dwellings Requiring Repairs (%) | 19.4% | 17.6% | 30.7% |
This data-driven approach offers valuable insights into Canada’s rental market and the challenges faced by non-permanent residents.
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