Provincial spending on housing and homelessness in Ontario

With Ontario’s election weeks away, this policy brief presents a stark reality: homelessness in Ontario is worsening, with chronic homelessness nearly doubling in just two years. While municipalities have increased their spending on housing and homelessness, provincial investments have remained stagnant in real terms. The Ontario government’s recent commitment to “end encampments” falls far short of what is needed. To truly address chronic homelessness, Ontario must invest an additional $11 billion over the next decade, beginning by doubling spending on housing from $700 million to $1.4 billion in 2025-26. 

Highlights:

• Homelessness is worsening: Over 81,000 Ontarians experienced homelessness in 2024, a 25% increase in two years. Chronic homelessness nearly doubled in the same period. 
• Current spending is not enough: After adjusting for inflation, provincial spending on housing and homelessness is stagnant, with funding increasingly directed at emergency shelters rather than long-term solutions. 
• Municipalities are carrying a larger share: While municipal and federal contributions have increased, the provincial share of housing and homelessness funding has declined since 2016. 
• The government’s recent investment is insufficient: The $44.5 million in new funding announced in December 2024 amounts to just 4% of what is needed annually to end chronic homelessness. 
• Ontario must act now: A serious plan requires an additional $11 billion over the next decade to build 75,000 new supportive and deeply affordable housing units. Maytree calls on all parties to commit to this investment.