A fresh report by Ontario’s municipalities reveals a concerning rise in homelessness, impacting an estimated 85,000 individuals lacking shelter in 2025. The province also hosts close to 2,000 encampments, with over half of the homeless enduring extended periods exceeding six months. Disturbingly, approximately 20,000 children and youth in Ontario are grappling with homelessness, with regions in the north and rural areas witnessing a surge in this issue.
Commenting on the situation, Lindsay Jones, AMO’s executive director, highlighted systemic failures due to inadequate investments in crucial support systems like income security, mental health services, and affordable housing. The report projects a bleak future, forecasting a rise in homelessness to 177,000 by 2035 under stable economic conditions. However, in case of an economic downturn, the number could swell to nearly 300,000.
The study, which follows a prior comprehensive analysis of homelessness in the province, underscores a 7.8% increase in homelessness from the previous year, with a notable spike following the onset of the COVID-19 pandemic. Notably, homelessness escalated by 49.1% between 2021 and 2025, showcasing a persistent challenge even as housing and related funding increased.
Northern and rural communities are experiencing a disproportionate rise in homelessness, with a 37% surge in the north and a 31% increase in predominantly rural areas over the past year. Indigenous homelessness is a prominent concern, with a 25% uptick in this demographic noted in the latest data, totaling 11,000 individuals without shelter in 2025 compared to 6,100 in 2021.
The issue of encampments is also on the rise, with nearly 2,000 such sites scattered across Ontario. Encampments now consist of smaller clusters accommodating six to ten residents, signaling a shift in their nature. Jones criticized the enforcement-centric approach at the provincial level, stating it fails to address root causes and merely displaces the issue.
Despite increased public funding for housing and homelessness support services, the report emphasizes a lack of alignment with the escalating problem. While government funding for homelessness reached approximately $4 billion in 2025, researchers argue that an additional $11 billion over a decade is vital to eradicate homelessness. This necessitates substantial investment in various sectors, including rent-geared-to-income housing, affordable housing options, emergency shelters, and mental health and addiction services. Despite a 50% increase in emergency shelter funding, community housing funding has seen a slight decline since 2021, highlighting the need for a more holistic and sustainable approach to address the homelessness crisis.