Cost- The federal permanent resident target was reduced to 380,000.
- Temporary residents are targeted to fall to roughly 5% of the population by the end of 2026, down from a higher recent share.
- This represents a meaningful shift from the higher immigration targets of recent years, with direct implications for housing demand, particularly in the rental market.
The actual numbers
The federal government reduced its permanent resident intake target to 380,000, and separately targeted a reduction in temporary residents (which includes international students and temporary workers) to roughly 5% of Canada's total population by the end of 2026. Both represent a clear reduction from the higher targets and actual intake levels of the preceding several years.
Why this affects housing specifically
Population growth is one of the more direct drivers of housing demand, particularly in the rental market, where new arrivals — especially temporary residents and new permanent residents without existing home equity — disproportionately add to demand relative to their share of the overall population. A meaningful slowdown in population growth, all else equal, eases pressure on that demand side, complementing supply-side measures like Build Canada Homes rather than replacing them.
Where the effect shows up first
Rental markets, and particularly purpose-built and condo rental segments in large cities with historically high temporary resident populations, are generally where a demand slowdown shows up earliest and most visibly, ahead of ownership-market prices which respond to a broader set of factors including rates and overall economic conditions. It's one contributing factor among several behind the softer conditions described in our 2026 price update, not the sole explanation on its own.
- Department of Finance Canada — accessed September 2026
- Statistics Canada — accessed September 2026