Federal Government to Introduce First-Ever Limits on Temporary Foreign Residents to Ease Housing Demand

The federal government will introduce targets to limit the intake of temporary foreign residents for the first time, aiming to reduce it from 6.2% to 5% of the population over 3 years.

BMO economist Robert Kavcic says this could ease pressure on Canada's rental and housing market by lowering demand.

Slowing population growth from over 3% currently closer to 1% could also reduce stress on services and lead to lower interest rates.

The policy signals a shift toward addressing excess housing demand rather than just increasing supply.

Exceptions will be made for construction and healthcare to still allow temporary foreign workers in those sectors.