Rising costs and shelter shortages push residents to the edge
Toronto’s housing crisis has worsened as city shelters turn away residents in record numbers, pushing homelessness rates up, according to the Toronto Foundation.
Housing and shelter challenges are among Toronto’s most immediate concerns. The report revealed that only a fraction of those seeking emergency shelter space each day are successfully accommodated.
In September, about 230 calls came in daily from people needing shelter, but only seven received a placement. The overflow has led to a sharp increase in tent encampments throughout the city’s parks. This past March, there were more than 200 tents in 72 parks, compared to 82 tents across 24 parks at the same time last year.
"Our new roundup provides a detailed picture of how population growth is showing up, which matters for a city that will always rely on immigration," said Sharon Avery, CEO of Toronto Foundation. "Digging into the data, we learned that population growth alone does not reflect the state of the city. What really struck us was an overlooked story of growth.
"It's time to get a grip on growth."
The shelter issues mirror broader financial struggles. More Torontonians than ever are feeling the pinch, with 40% saying their income isn’t enough to cover basic needs, up from 31% last year.
This growing financial strain is visible in food banks, where demand has surged to over 300,000 users per month. Many of these clients are employed but still can’t afford essentials due to steep rent hikes and a cost-of-living spike that has driven food prices up 25% since the pandemic began.
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While the city has seen some economic growth, such as a 75% jump in retail sales since 2015 and an average wage increase to $39 per hour, this has not been enough to offset the economic strain on many residents.
“When 2.7 million people say they don't have enough to make ends meet, we can't look away,” Avery said in the report.
Nonprofit organizations, which provide essential services to vulnerable groups, are stretched thin. According to the Ontario Nonprofit Network, only 15% of nonprofits report that they can keep up with demand, and more than half have had to reduce services due to staffing shortages and declining donations.
Mental health resources are also facing large demand, with 26% of Toronto adults reporting moderate depression symptoms and 17% experiencing anxiety. Meanwhile, the city’s healthcare infrastructure remains overburdened; over 500,000 residents do not have a family doctor, further limiting access to care.
"It's not all bad news," said Avery. "Our hope is that the economic growth will continue, so the heightened vulnerability will begin to drop.”
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