Homelessness rates in Ontario have surged by over 23% in the last four years, reaching more than 76,000 individuals, according to a new report from the Financial Accountability Office of Ontario (FAO). Despite this increase, the province is expected to reduce its spending on homelessness services.
The FAO projects that the number of homeless individuals will further rise by over 15% to surpass 88,000 people within the next three years. Factors contributing to this trend include diminishing housing affordability and substantial population growth. However, the report notes that the expansion of provincial and federal supports for asylum claimants in 2025-2026 is helping counterbalance this growth.
The report highlights that funding for provincial homeless programs, such as emergency shelters, supportive housing, and rent assistance, is anticipated to decrease due to the expiration of time-limited funding and reduced base program spending.
Toronto leads the list with 19,462 unhoused individuals in 2024-2025, followed by Ottawa, London, Windsor, and Hamilton. The most significant growth from 2022 to 2025 was observed in Durham, Peel, and York regions at 130.8%, 90.5%, and 79.6%, respectively. Conversely, Toronto witnessed an 8.2% decrease during the same period.
Opposition members, including Ontario NDP MPP Jessica Bell and Ontario Liberal MPPs Lee Fairclough and Ted Hsu, expressed concern over the escalating homelessness crisis. They emphasized the need for immediate action from Premier Doug Ford to address the rising number of individuals experiencing homelessness.
The FAO estimates that the known homeless population surged from 62,252 individuals in 2022-2023 to approximately 76,741 individuals in 2025-2026, marking a 23% increase. Projections indicate a further 15.8% rise to 88,859 individuals by 2028-2029. Concurrently, the number of households supported by provincial programs is expected to decline from 204,876 in 2025-2026 to 187,205 in 2028-2029.
According to the FAO, provincial spending on homelessness programs is set to decrease to $708 million in 2028-2029 from a peak of $1.2 billion in 2020-21 due to the expiration of time-limited funding.
In response to the report, Michael Minzak, press secretary for Ontario’s minister of municipal affairs and housing, emphasized the government’s commitment to investing in mental health support and providing municipalities with resources to combat homelessness effectively. The government also introduced a “by-name” list initiative to aid in connecting unhoused individuals with necessary services at the local level.