A new report by the Northern Ontario Services Deliverers Association shows that a targeted investment of mere pennies on the dollar could stabilize the region’s homelessness crisis.
The report states a targeted investment of $435 million dollars, the equivalent of 1.3 cents for every dollar generated by the Northern Ontario economy, would help the region move away from costly emergency crisis management toward long-term community stability.
To protect Northern Ontario’s $34.6 billion economic base and to combat the 37 per cent spike in homelessness, the report calls for urgent “provincial intervention” in the region’s healthcare and housing sectors.
“Emergency departments have become the default support for those experiencing mental health challenges in many northern communities,” said CMHA Muskoka-Parry Sound Executive Director, Diane Brown-Demarco. “These services are essential, but they are not designed to provide the long-term, recovery-oriented supports people need to remain well, housed and connected to their communities.”
Currently, rates of substance-related harms and emergency room visits in the North are nearly quadruple the provincial average. This crisis is being compounded by a severe shortage of affordable housing and timely mental health support, creating an unsustainable burden on public resources as homelessness expands.
As a result of the data collected, the report outlines three investment pathways for Northern Ontario.
The first scenario involves investments of around $2.0 billion over 10 years, with a focus on high-acuity situations. It uses intensive housing and Homelessness and Addiction Recovery Treatment (HART) Hubs to successfully stabilize those with the most complex needs, but fails to reduce overall homelessness numbers.
The second scenario involves integrated housing and health investments of around $5.1 billion over 10 years. It focuses on massive housing construction that eventually reduces homelessness by 78 per cent by 2035, though it remains slow to show results in the early years.
The third and most recommended scenario involves integrated investment with stronger support of around $4.36 billion over 10 years. It achieves comparable results to the second scenario but at 15 per cent less cost by prioritizing higher levels of mental health and addiction staff over sheer unit volume.
The report states by focusing on the quality of support, this third scenario allows people to exit homelessness faster and stay housed more reliably, making it the most fiscally efficient strategy for the North’s economy.
“Investment in community mental health and addictions supports is an investment in our economic infrastructure,” said Brown-Demarco. “It’s not just compassionate; it’s fiscally responsible and essential to Northern Ontario’s long-term prosperity.”
The report was developed through a partnership between HelpSeeker Technologies, Northern Ontario Service Deliverers Association (NOSDA), and the Canadian Mental Health Association (CMHA).
