Caps on foreign student numbers in Canada are creating significant pressure on landlords, leading to a dramatic drop in demand for student housing. This situation presents a clear negative impact on the short-term rental and property investment market catering to this demographic. The squeeze on landlords suggests a potential decrease in rental income and property values in affected areas. Conversely, this could present opportunities for other segments of the rental market or for investors looking for properties less reliant on foreign student demand. The government’s policy intervention is a key external factor directly influencing real estate supply and demand. Investors in the Canadian real estate market, particularly those focused on student accommodations, should exercise caution and consider diversifying their portfolios to mitigate risks associated with policy changes.