Ontario study: $11B over 10 years could end chronic homelessness

Key Takeaways:

• In 2024, over 80,000 Ontarians were identified as homeless, reflecting a 25% increase since 2022. Without significant intervention, homelessness in Ontario could double within a decade and potentially reach nearly 300,000 during an economic downturn.
• The crisis is attributed to decades of underinvestment in affordable housing, income support, and mental health services, coupled with economic pressures. Municipalities in Ontario bear the financial burden for social housing, with municipal funding for housing programs exceeding $2.1 billion in 2024, while provincial contributions remain inadequate.
• The study recommends shifting focus to long-term housing solutions over temporary emergency measures. Modelling showed that eliminating chronic homelessness would require $11 billion over 10 years to create 75,050 new housing and support spaces. Addressing encampments would cost $2 billion over 8 years, providing 5,700 housing and support spaces.

The Whole Story:

A new study found that more than 80,000 Ontarians were known to be homeless in 2024, a number that has grown by more than 25% since 2022. 

The Association of Municipalities of Ontario (AMO) released the study, noting that without significant intervention, homelessness in Ontario could double in the next decade, and reach nearly 300,000 people in an economic downturn. 

“The scope and scale of homelessness across Ontario’s municipalities is truly staggering,” said Robin Jones, AMO President. “Without real and meaningful provincial action, the quality of life and economic prosperity of Ontario’s communities is at risk. We can solve this crisis, but we need to work together.”

The study was conducted by HelpSeeker Technologies, in partnership with AMO, the Ontario Municipal Social Services Association (OMSSA) and the Northern Ontario Service Deliverers Association (NOSDA).

AMO stated that the crisis stems from decades of underinvestment in deeply affordable housing, income support and mental health and addictions treatment, combined with escalating economic pressures on communities.

The group added that Ontario is the only province where responsibility for social housing has been downloaded to municipalities. Municipal funding for housing and homelessness programs has grown significantly in recent years, totalling more than $2.1 billion in 2024. Meanwhile, recent provincial investments represent just a fraction of what’s required, offering nominal increases to already overstretched shelter and housing programs.

The report proposes a fundamentally new approach that focuses on long-term housing solutions over temporary emergency measures and enforcement:

AMO found that an estimated additional $11 billion over 10 years could end chronic homelessness by boosting the supply of affordable housing, improving transitional and supportive services, and enhancing prevention programs.

According to AMO’s modelling, eliminating chronic homelessness during this time period would include creating 75,050 new housing and support spaces, ensuring the infrastructure exists to house people permanently.

An additional $2 billion over 8 years could largely eliminate encampments. This includes 5,700 new housing and support spaces to stabilize and transition people out of encampments. AMO urged provincial and federal governments to take “significant, long-term action” on affordable housing, mental health and addictions services, and income supports to fix homelessness to improve communities’ economic foundations and quality of life.