Toronto homelessness: estimated cost to house people living in parks and streets

The Star estimated upfront capital of about $444 million to build permanent homes for Toronto's outdoor population of 1,615 people, while a portable-subsidy approach for the same group could cost roughly $24 million a year.

Hundreds of people in Toronto continue to live outdoors in encampments, doorways and on sidewalks as winter arrives. The article reports that the core barrier is a shortage of affordable, permanent housing and that building new homes requires substantial upfront capital. The Star compared the per-unit cost of a 2024 supportive housing project to estimate the cost to house everyone counted living outdoors. City officials and housing experts told the Star that both immediate subsidies and long-term capital investment are part of the conversation. Known details: - The Star used the Dunn House example, at about $275,000 per unit, and estimated roughly $444 million in upfront capital to house the 1,615 people counted living outdoors in the 2024 street needs survey. - A portable-subsidy approach, which uses existing private-market units, was estimated by the Star at about $24 million per year for the same group, and the article reports the city's portable-subsidy funding had run out with no new funds expected until at least April. - Toronto's 2025 budget allocated $34.1 million for services aimed at people sleeping outdoors, and council voted in late 2025 to prioritize quickly removing encampments near schools, playgrounds and daycares; city staff are reported as working on how to implement that change. Summary: The estimated upfront capital to build permanent homes for people counted living outdoors is large relative to current annual spending on encampment services, and experts quoted in the article said permanent affordable housing can be more effective over time than stopgap measures. City staff are working on implementing the council decision to prioritize removals near schools, and the timeline and full funding plan for building new units or scaling supports is undetermined at this time.