Canada’s Immigration Shakeup: What’s Changing in 2025?

Big shifts are underway in Canada’s immigration policies. After admitting “mistakes” in managing accelerated population growth, Prime Minister Justin Trudeau’s government has hit the brakes on immigration targets and tightened rules across the board. The new measures aim to ease pressures on housing, jobs, and social systems—but will they work?

Here’s the gist: Immigration targets have been slashed. Canada will welcome far fewer permanent and temporary residents over the next three years, dropping from 500,000 annually to just 365,000 by 2027. The cap on international student permits is also being lowered, with tougher language requirements and fewer fast-track pathways for work permits. These measures are set to create profound shifts across the housing market and the broader economy.

Temporary foreign workers? Expect stricter guidelines, reduced usage, and tougher oversight on employers. Even travelers face changes: the automatic 10-year multiple-entry visa is no longer the norm, as Ottawa aims to preserve the integrity of its immigration system.

Nearly 40% of Canada’s housing inventory is renter-occupied, and for years, immigration has been the engine driving rental demand in cities like Toronto and Vancouver. International students, temporary foreign workers, and new immigrants have flocked to centrally located, transit-accessible housing, often paying a premium for limited options. This high-rent-paying segment has not only elevated rental market averages but also created fierce competition in metropolitan areas. With tighter immigration policies now in place, we could see a significant dip in rental demand—and a corresponding decline in average rents.

But it doesn’t stop at real estate. Immigrants, often young and upwardly mobile, have been key players in fueling demand in sectors like retail, automotive, and beyond. A slowdown in population growth means fewer consumers and that ripple effect could be felt across provincial economies that are dependent on this spending.

These moves reflect a clear pivot - Canada is recalibrating after the post-pandemic surge in population growth. But with a housing crisis, skyrocketing costs of living, and economic uncertainty looming large, are these changes too late, too little, or exactly what’s needed? Only time will tell.

Nikola Petkovic – ???????????????? ??????????, ???????????????????? ?????????????? ???? ???????? ????????????

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? 2025 Nikola Petkovic