Muskoka homelessness pressures grow as costs rise and needs become more complex

In Muskoka, homelessness increased by 15.1 per cent from 2024, compared to 7.8 per cent provincially

Staff warned of growing pressures on homelessness services, in the District's March 19th joint Planning and Health Services Committee meting.

They reported increasing demand, complexity, and costs associated with homelessness programs and services across the region.

According to the report, nearly 85,000 Ontarians experienced homelessness in 2025, with rural and northern communities seeing faster growth. In Muskoka, homelessness increased by 15.1 per cent from 2024, compared to 7.8 per cent provincially.

Local data shows shifting trends. While the number of households requiring shelter decreased 16 per cent, total shelter nights rose 46 per cent, reflecting longer stays and more complex client needs. Motel shelter costs also rose from $721,641 in 2022/23 to a projected $1,015,907 in 2025/26.

Since April 1, 2025, case managers have supported 582 households, including 449 experiencing homelessness and 133 at risk. At the time of the report, 208 households were actively being supported, with 170 experiencing homelessness. Of those households, 43 per cent were identified as high acuity, 30 per cent medium, and 27 per cent low.

The report highlights growing pressure on support systems. The Housing Support Fund has increased 49 per cent over five years, assisting 902 households in 2024/25, up from 604 in 2021/22. In early 2026 alone, more than 250 applications were received in the first two months.

Additional data shows that 64 per cent of actively homeless individuals are living in precarious conditions, while 36 per cent are using the emergency motel shelter model. Over a 10-month period, 235 households accessed motel accommodations, with 46 per cent identified as chronically homeless. Of those households, 65 per cent required longer-term stays.

The report also points to broader contributing factors, including a lack of affordable housing, stagnant social assistance rates, rising rents, and limited access to mental health and addiction services. Ontario Works shelter support remains at $390 per month, while average bachelor rents have increased to $1,307.

According to the report, homelessness in Muskoka is increasingly complex, requiring coordinated responses across housing, health care, and community services.

Staff indicated that they will continue to investigate best practices, improve data analytics, and strengthen partnerships to better respond to growing demand and support long-term, housing-first solutions moving forward.