Homelessness in Ontario is on the rise, climbing by more than 23 per cent over the past four years to more than 76,000 people, but the province is projected to spend less on it, the fiscal watchdog says in a new report.
The Financial Accountability Office of Ontario (FAO) says in the report released Thursday that the number of unhoused people is expected to increase by more than 15 per cent to more than 88,000 people over the next three years. The number represents the “known population experiencing homelessness,” meaning it excludes those who have not consented to being included, the report says.
Declining housing affordability and strong population growth are said to be behind the increase, the report says, but the growth is partially offset by an expansion of provincial supports and an increase in federal supports for asylum claimants in 2025-2026.
Meanwhile, the number of households supported by provincial homeless programs is projected to drop over the same time period due to an end in time-limited funding and lower base program spending, the FAO adds. These programs include funding for emergency shelters, supportive housing, rent assistance and community outreach.
Toronto tops the list for unhoused people, with 19,462 in 2024-2025. It’s followed by Ottawa with 9,431, London with 4,576, Windsor with 4,007 and Hamilton with 3,744.
The highest growth from 2022-2025 was seen in Durham, Peel and York regions at at 130.8 per cent, 90.5 per cent and 79.6 per cent, respectively.
Toronto’s total declined 8.2 per cent over that time period, the report noted.
Numbers going in wrong direction, opposition says
Opposition MPPs say the numbers are going in the wrong direction.
Ontario NDP MPP Jessica Bell, who represents University-Rosedale, said in a news release that the NDP is calling on Premier Doug Ford to take action immediately.
“Families are facing rising costs for housing and their everyday needs,” Bell said.
“It is unacceptable that people are being forced to sleep on sidewalks, in condo stairwells, or public transit systems and libraries.”
Bell said the time-limited funding is ending when it is most needed.
Lee Fairclough, Ontario Liberal MPP for Etobicoke Lakeshore and a contender for the party’s leadership, said in a news release that the report indicates that homelessness is rising as supports are declining.
“Every dollar that Ontario fails to invest in upstream prevention translates to pressure on shelters, hospitals and frontline workers, particularly in Northern Ontario. Ontario needs a clear province-wide strategy to end homelessness.”
Ontario MPP Lee Fairclough is shown here in Brampton, Ont, on Monday, August 10, 2026. Fairclough says: ‘Ontario needs a clear province-wide strategy to end homelessness.’ (Arlyn McAdorey/The Canadian Press)
Ted Hsu, Ontario Liberal MPP for Kingston and the Islands, said he asked the FAO for the report because the province was relying on pre-pandemic numbers and housing and homelessness has changed since then.
“The message is simple: the province is spending less while more people become homeless. Those numbers don’t add up. This government does not have a handle on the problem,” Hsu said.
Aislinn Clancy, Green Party of Ontario MPP for Kitchener Centre, said in a news release that the increase in homelessness will result in more lives lost, more suffering and more pressure on public services and businesses.
“It’s time for Doug Ford to stop dodging accountability for the homelessness crisis his own government created. Municipalities cannot continue to carry the burden of this alone,” Clancy said.
Clancy said she is calling for the building of supportive, transitional and community housing and action to protect renters from “bad-acting” landlords, illegal evictions and rent hikes.
Spending to decline to $708M in 2028-2029: report
According to its estimates, the FAO said the “known population experiencing homelessness” grew from 62,252 people in 2022-2023 to an estimated 76,741 people in 2025-2026, an increase of 23 per cent or 14,489 people.
The number is estimated to increase by 15.8 per cent from 76,741 individuals in 2025-26 to 88,859 individuals in 2028‑29.
Meanwhile, the number of households supported by provincial programs will fall from 204,876 in 2025-2026 to 187,205 in 2028-2029, the FAO said.
PC MPP Rob Flack at Queen’s Park in Toronto on May 13, 2025. His press secretary Michael Minzak says the government has made ‘record investments in mental health support’ while giving municipalities ‘the tools they need to address homelessness and build more supportive housing.’ (Cole Burston/The Canadian Press)
“Overall, provincial spending on homelessness programs is projected to increase from $297 million in 2013-14 to $708 million in 2028-29, which represents an average annual growth rate of 6.0 per cent,” the FAO says in a news release.
“More recently, since 2020-21, provincial spending on homelessness programs has fluctuated due to time-limited funding, ranging from a high of $1.2 billion in 2020-21 to a low of $654 million in 2022-23, before reaching a projected $948 million in 2026-27. As time-limited funding expires, the FAO projects that total provincial homelessness program spending will decline to $708 million in 2028-29.”
Report reflects moment in time: minister’s spokesperson
Michael Minzak, press secretary for Rob Flack, Ontario’s minister of municipal affairs and housing, said the report captures a moment in time instead of accounting for actual government spending or new investments.
“Our government has made record investments in mental health support to help people break the tragic cycle of addiction while giving municipalities the tools they need to address homelessness and build more supportive housing,” Minzak said.
“We will continue to make the investments necessary to protect Ontario communities while ensuring municipalities have the resources they need to respond to homelessness, expand services, create more supportive housing and ensure people struggling with addiction and mental health challenges have a pathway to treatment.”
The government told Ontario’s municipalities in March 2021 to implement a “by-name” list to record demographic information about unhoused people locally and to help connect them to services.