A recent report from Ontario’s municipalities reveals a concerning rise in homelessness, with an estimated 85,000 individuals lacking stable housing in 2025. The report also highlights nearly 2,000 encampments scattered across the province. Of the homeless population, over half endure extended periods of homelessness lasting six months or more, with approximately 20,000 children and youth facing housing insecurity.
The data underscores a troubling trend in northern and rural regions where homelessness is on the ascent. Lindsay Jones, the executive director of the Association of Municipalities of Ontario, expressed alarm at the situation, attributing it to longstanding neglect in crucial social support systems like income security, mental health services, and affordable housing.
Projections indicate that homelessness will persist and potentially worsen until 2035, with an estimated 177,000 people expected to be homeless under stable economic conditions by that year. However, in the event of an economic downturn, exacerbated by factors such as the ongoing trade dispute with the United States, the number of homeless individuals could soar to nearly 300,000.
The report, a follow-up to a comprehensive study conducted by the AMO, OMSSA, and NOSDA, highlights a 7.8% increase in homelessness from the previous year, with a notable surge following the onset of the COVID-19 pandemic. Homelessness rates have surged by 49.1% from 2021 to 2025, signaling a persistent challenge in ensuring adequate housing and support services.
Particularly alarming is the spike in Indigenous homelessness, with a 25% increase in 2025 compared to previous years. The data reveals a significant rise in the number of Indigenous individuals without homes, reaching 11,000 in 2025 from 6,100 in 2021.
Encampments have also proliferated, with close to 2,000 such locations identified across Ontario. The report highlights a shift in the nature of encampments, now characterized by smaller clusters accommodating six to ten individuals. Despite increased public funding for housing and homelessness initiatives, the report notes a critical gap in addressing the root causes of homelessness, resulting in prolonged periods of housing insecurity for many individuals.
To combat homelessness effectively, the report underscores the need for a substantial investment of $11 billion over the next decade. This investment would bolster crucial areas such as rent-geared-to-income housing, affordable housing options, emergency shelters, and mental health and addiction support services. While emergency shelter funding has seen a notable increase, community housing funding has experienced a decline, underscoring the necessity for a comprehensive and sustainable approach to addressing homelessness in Ontario.