October 25, 2026
By Stephen Iwuh | Dalena Reporters
TORONTO, Ontario — The growing homelessness crisis is expected to be one of the most difficult issues facing mayors and municipal councils elected across Ontario, as communities struggle to provide affordable housing, supportive services and adequate responses to rising demand for mental health and addiction programs.
With Ontario municipalities preparing for a new round of elected leadership, the scale of homelessness has become increasingly difficult for local governments to manage on their own. Municipalities are responsible for many frontline housing and homelessness services, but local officials say the financial burden has grown beyond what cities and towns can sustainably carry.
The Association of Municipalities of Ontario (AMO), which represents the province's 444 municipalities, has warned that Ontario has reached a critical point in its homelessness crisis. A study by the organization found that nearly 80,000 people were experiencing homelessness in Ontario in 2024. That figure increased to approximately 85,000 in 2025, with AMO expecting the number to rise again.
Riley Brockington, president of AMO and an Ottawa city councillor, described the figure as shocking for a province as wealthy as Ontario.
More than half of those experiencing homelessness had been without stable housing for more than six months, according to AMO's findings. The organization said the problem is no longer confined to Ontario's largest urban centres, with communities across the province facing growing pressure on shelters, housing programs and municipal budgets.
For municipal governments, the financial challenge is particularly serious because cities and towns cannot simply run deficits to cover the growing cost of homelessness services. As more money is directed toward emergency shelters, outreach programs and housing supports, municipalities have less flexibility to fund other services or respond to emerging community needs.
Brockington said municipalities need stronger and more predictable financial support from both the provincial and federal governments.
AMO is calling for a national housing strategy backed by long-term funding. The organization has proposed approximately $11 billion over 10 years to support supportive, transitional and community housing for about 75,000 people, along with funding for homelessness prevention programs.
The association is also seeking an additional $2 billion over eight years to respond to the growth of homeless encampments across Ontario. AMO reported that there were nearly 2,000 encampments across the province last year.
The spread of encampments has become particularly challenging in smaller and rural communities that often lack emergency shelters or the infrastructure available in larger cities.
Brockington said every person in Ontario should have a safe place to live, but emphasized that providing that level of support is expensive and cannot realistically be left solely to municipal governments.
One of the biggest frustrations for municipal leaders is that all three levels of government generally agree that additional housing, particularly supportive housing, is necessary. However, municipalities often receive funding through programs that are temporary rather than permanent.
That makes long-term planning difficult.
Municipalities may be able to launch a housing or support program when funding is available, but if the funding expires, local governments can be left scrambling to determine how services will continue.
Brockington said municipalities need assurances that funding will remain available over the long term so they can make responsible budgets and develop sustainable housing strategies rather than repeatedly responding to short-term funding cycles.
The Financial Accountability Office of Ontario has also highlighted fluctuations in provincial spending on homelessness programs. Provincial spending is projected to reach approximately $948 million in 2026-27, but the figure is expected to fall to about $708 million in 2028-29 because some of the funding is time-limited.
That projected reduction has raised concerns among municipal leaders and housing advocates about how communities will maintain services if homelessness continues to increase.
The crisis is also becoming increasingly visible outside Ontario's largest cities.
AMO's research found that homelessness increased by 37 per cent in northern Ontario and by 31 per cent in predominantly rural communities in a single year. The figures demonstrate that the housing crisis is not exclusively a Toronto, Ottawa or Hamilton problem.
Smaller municipalities are increasingly being forced to deal with homelessness despite having fewer shelters, fewer specialized services and smaller tax bases.
Young people are another major concern.
AMO estimates that approximately 20,000 youth are experiencing homelessness across Ontario. In Toronto alone, more than 1,000 teenagers and children are in shelters or on the streets on any given night.
For organizations working directly with homeless youth, prevention is considered one of the most effective ways to prevent homelessness from becoming chronic.
Mark Aston, chief executive officer of Covenant House Toronto, said young people are increasingly finding it difficult to escape homelessness because of a combination of housing affordability, difficulties in the job market, family breakdown and complex health and social needs.
Covenant House operates emergency shelters, transitional housing and support programs for young people in crisis. Its services include education and employment support as well as connections to health-care and other social services.
Aston said one of the organization's most successful approaches has involved prevention work in Toronto schools. According to Covenant House, more than 90 per cent of young people identified as being at risk of homelessness have avoided becoming homeless through the program.
He argued that prevention programs should be expanded throughout Ontario rather than waiting until young people have already lost stable housing.
The reason is partly connected to the long-term effects of youth homelessness. Aston said between 30 and 50 per cent of adults experiencing chronic homelessness can trace their experience back to their youth.
Once homelessness becomes entrenched, finding stable housing and rebuilding social connections can become considerably more difficult.
For young people, family pressure, conflict and family breakdown are among the major causes of homelessness, while eviction is a leading cause among adults.
Aston said early intervention can help young people stabilize their lives before homelessness becomes chronic. That can involve providing temporary housing, connecting young people with health and mental health professionals, supporting education and employment, and helping rebuild family or community relationships where appropriate.
The issue is expected to remain prominent in Toronto's municipal politics as voters decide between incumbent Mayor Olivia Chow and councillor Brad Bradford.
Earlier polling found that affordability, housing, public safety and transit were among the major issues Toronto residents wanted municipal candidates to address. Homelessness was also identified as a significant concern, with some residents calling for greater action to ensure people have access to stable housing.
Chow has defended her approach to homelessness and has pointed to the city's efforts to expand shelter capacity and affordable housing. Bradford has proposed a greater emphasis on supportive and transitional housing.
The debate reflects a broader question confronting municipal leaders across Ontario: how to provide immediate assistance to people living without homes while simultaneously addressing the underlying causes that push people into homelessness.
Housing affordability is a central part of the problem. Rising rents, limited affordable housing supply, evictions, low incomes and difficult labour-market conditions can all increase the risk of homelessness.
Mental health and addiction services are another major part of the discussion, particularly for people experiencing chronic homelessness who require more than a place to sleep.
Toronto's own municipal documents have identified a shortage of appropriate supportive housing for people leaving homelessness, particularly individuals dealing with complex mental health and addiction challenges. Without adequate support, some people struggle to maintain housing, leading to repeated evictions, returns to homelessness and continued pressure on shelters.
The challenge facing the incoming mayors and councils therefore extends beyond simply building more emergency shelters.
Municipalities will need to balance emergency responses with investments in permanent housing, supportive housing, prevention programs, mental health services, addiction treatment, employment assistance and programs designed to keep people from losing their homes in the first place.
For rural and northern communities, the challenge may be even more complicated because services are often spread across large geographic areas and specialized programs can be difficult to establish.
The lack of stable long-term funding remains a central concern.
Municipal officials argue that predictable funding would allow them to negotiate longer-term housing agreements, hire permanent staff, develop supportive housing and establish prevention programs without worrying that the money will disappear after a short funding period.
Housing advocates also argue that prevention can ultimately reduce costs by preventing people from entering emergency shelters and becoming chronically homeless.
The issue will now fall heavily on the shoulders of the mayors and councillors elected across Ontario. While municipalities will remain responsible for much of the frontline response, local leaders are expected to press the provincial and federal governments for more funding and a clearer long-term strategy.
For Aston, the priority should be particularly clear when it comes to young people.
He urged incoming mayors across Ontario to make ending youth homelessness a central commitment of their administrations.
The challenge is substantial, but advocates say solutions already exist. The bigger question is whether governments can provide the long-term funding, coordination and political commitment necessary to expand those solutions.
As Ontario prepares for new municipal leadership, homelessness is therefore emerging as more than a social-services issue. It is becoming a major test of municipal finances, intergovernmental cooperation and the ability of communities to provide vulnerable residents with something as fundamental as a safe and stable place to call home.