International students are feeling the crunch of the global economy’s continued uncertainty post-pandemic. In the ApplyBoard Pulse Survey last fall, the top three responses related to affordability, the cost of international study, and return on investment.
Today, we’re breaking down some study abroad costs for international students in Canada in 2022/23. We look at undergraduate and graduate tuition across the country, as well as rental costs in major cities. We also touch on the impact of inflation. Leveraging this data will help our partner schools and recruitment partners set their students up for success.
Key Insights at a Glance
- The average tuition for international students at the undergraduate level surpassed $36,000 in 2022/23.1
- On average, tuition for undergraduate studies was 72% higher than postgraduate studies.
- The Atlantic provinces are some of the most affordable destinations for international students for both tuition and rent.
- In 2021, renters were three times more likely than homeowners to live in core housing need.2
Canadian Tuition for International Students in 2022/23
In 2022, demand for a Canadian education reached record highs. And since institutions have limited seats, it’s unsurprising that the average tuition rate increased for the 2022/23 academic year. The question is, by how much?
The chart below shows the average annual tuition for international students in Canada since 2018/19:
The average tuition for international students at the undergraduate level surpassed $36,000 in 2022/23. This was an increase of 8% over the previous academic year, and a return to the pre-pandemic growth rate.
The changes were a little less stark at the postgraduate level. The average tuition for international students was over $21,000 for postgraduate studies in 2022/23. This was up 4% from the previous year and below the pre-pandemic growth rate, which ranged between 6% and 8%.
But how do these tuition increases compare to the demand for higher education in Canada?
Outside of the COVID-impacted year of 2020, study permit approvals for higher education increased by at least 14% in every year since 2016.3 And processed applications grew at least 32% every year during the same period. This included a growth of 22% in approvals and a growth of 34% in processed applications in 2022 over the previous year. This means that demand for a Canadian education has continuously grown at a higher rate than tuition since 2016.
The average tuition for undergraduate studies was 72% higher than postgraduate studies in 2022/23.
Average Tuition Cost by Canadian Provinces in 2022/23
Provincial tuition averages in Canada differ wildly. In fact, undergraduate tuition in the most expensive province in 2022/23 was $28,000 more than in the least expensive province.
So for cost-sensitive students, which provinces are most affordable? The graphics below show the average annual tuition for international students by Canadian province in 2022/23, as well as for the past five academic years:
Ontario is the most popular province for international students. In 2022, the province accounted for 54% of all applications processed to Canada, and 54% of all approvals. Given the weight of this demand, it’s unsurprising that Ontario has the highest average tuition of all the provinces.
In fact, Ontario’s popularity significantly affects the national average tuition. The average tuition for undergraduate students outside of Ontario was $23,300 for 2022/23, significantly below the $36,000 national average. The Atlantic provinces ranged between $16,700 and $21,200, while the Prairies ranged between $18,400 and $29,600.
Ontario’s effect on postgraduate tuition is less pronounced. Nova Scotia and British Columbia both came in above the national average in 2022/23. Newfoundland and Labrador is the least expensive province for international students pursuing postgraduate studies, with an average tuition around $5,300. Next was Saskatchewan, with an average tuition of just below $7,800.
Prince Edward Island is the only Canadian province in which the average tuition decreased compared to 2018/19. Undergraduate students pay 6% less for tuition than they did five years ago, while postgraduate students pay 10% less.
Housing Costs in Major Canadian Cities in 2022
Next to tuition, housing costs are one of the biggest concerns for international students. The graphic below shows the average rental of a one bedroom apartment in select Canadian census metropolitan areas (CMA)4 for 2022:5
The average rent for a one bedroom apartment in Vancouver increased by 8% in 2022 compared to 2021. This increase made it Canada’s most expensive CMA for the first time since 2019. With an average rent that surpassed $1,500 per month, both Vancouver and Toronto were 14% more expensive than the next major CMA.
Montréal, Canada’s second most populous CMA, averaged $912 per month for a one bedroom rental last year. This was an increase of 11% compared to 2021, the largest growth rate for this period among these major cities.
Accounting for three of Canada’s largest multicultural CMAs, Vancouver, Toronto, and Montréal will likely continue to see high housing demand for the foreseeable future.
The average rent for one bedroom units in major Prairie CMAs like Edmonton, Winnipeg, Saskatoon, and Regina ranged within $100 from each other. Rental prices increased between 3% and 6% for these CMAs. Meanwhile, as arguably the fastest growing city in the Prairies, Calgary is noticeably more expensive than its Prairies counterparts. The average rental price for a one bedroom apartment in the Stampede City grew by 10% in 2022 over the previous year, reaching $1,222 per month.
Rent remained relatively the lowest in Atlantic Canada in 2022, with the exception of Halifax. The City of Trees was the only major Atlantic CMA with an average rent above $1,000 per month for a one bedroom apartment.
Looking Ahead
The demand for a Canadian education has naturally driven tuition costs higher over the past five years. But broader economic pressures are further compounding the cost of an international student’s study abroad journey.
For students and recruitment partners, considering programs in lower cost-of-living areas like Atlantic Canada or the Prairies could go a long way toward affordability. Study location preference is one of the largest affordability factors that students can control.
Students and recruitment partners can leverage the ApplyBoard Platform to search for comparable programs of choice by most affordable provinces.
Programs with co-op opportunities and soft-skills development are also worth strong consideration. Students who leverage career-oriented resources will likely see a larger return on their investment.
For institutions, student housing investments could be a deciding factor for attracting more students. In 2021, renters were three times more likely than homeowners to live in core housing need.6 And unaffordable housing was the source of over 77% of those living in need of core housing.7 Institutions that can provide their students with stable housing are much more likely to see their students succeed.
Likewise, investments into affordable meal plans will help institutions set their students up for success. Food inflation is impacting Canada at large. Food prices increased 10.6% in February 2023 compared to the previous year, more than double the overall rate of inflation over the same period.8 Institutions that invest in meal plans to help alleviate this pressure could see untold dividends. Student success in learning is significantly impacted by nutrition.
At ApplyBoard, we are excited to continue working with our partner institutions to help educate the world.
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FOOTNOTES:
1. Data courtesy of Statistics Canada. All currency in CAD.
2. Statistics Canada, Core housing need in Canada. September 2022. Core housing need means the household lives in an unsuitable, inadequate, or unaffordable dwelling and cannot afford alternative housing in their community.
3. Data courtesy of Immigration, Refugees and Citizenship Canada (IRCC).
4. Each CMA comprises multiple areas surrounding the listed city name. These surrounding areas impact the average rental cost in the CMA, often lowering the overall average. For a full breakdown of each CMA region, see the CMHC’s Rental Market Report.
5. Based on the average monthly rental cost of a one bedroom apartment in a row or apartment structure of three units or more.
6. Statistics Canada, Core housing need in Canada. September 2022. Core housing need means the household lives in an unsuitable, inadequate, or unaffordable dwelling and cannot afford alternative housing in their community.
7. Per Statistics Canada, a household that spends more than 30% of its income on shelter costs is considered unaffordable housing.
8. Statistics Canada, Consumer Price Index, February 2023. March 2023.
