• Part A: The state of infrastructure
  • What is Infrastructure?
  • Does Canada have the right kind of infrastructure to meet current and future needs?
  • Infrastructure as a shared priority
  • Infrastructure investments have nearly doubled in the last two decades
  • Having an understanding of infrastructure average age and remaining service life helps asset owners to inform early planning and management
  • The condition of infrastructure in Canada  
  • Asset management capacity is lower in smaller municipalities, and varies significantly among provinces and territories
  • Current and future infrastructure investments are influenced by key economic, socio-demographic and environmental factors
  • Cross-sectoral impacts of infrastructure - The economy
  • Cross-sectoral impacts of infrastructure - The environment
  • Cross-sectoral impacts of infrastructure - Our communities
  • The state of infrastructure – A summary
• Part B: The state of housing
  • An overall picture f housing tenure in Canada
  • Canada's housing system has long targeted homeownership
  • Current and future housing supply challenges in perspective
  • Short-term outlook not favourable to increasing supply
  • Rental supply outpaced by demand
  • Rental market tightening as population and ownership prices grow
  • Choices for low-income renters are limited
  • The rental market is also challenged by age of stock and source of supply
  • Who is being impacted by the rental supply challenge?
  • Aging social and affordable housing stock
  • Core housing need is higher in certain regions and populations
  • The state of housing – A summary
  • Key housing terminology
• Part C: The state of homelessness
  • Key definitions
  • Despite significant federal investments, homelessness is increasing
  • National shelter capacity
  • Homelessness in Canada: 2020-22 Point-in-time counts
  • Homelessness in Canada: Demographics
  • Economic trends and contributing factors to homelessness
  • Homelessness in Canada: Pathways into homelessness
  • The state of homelessness – A summary

Part A: The state of infrastructure

What is Infrastructure?

Infrastructure is a set of tangible assets that support the production, delivery and consumption of goods and services by governments, organizations and individuals. Examples of these assets include schools and hospitals; roads, rails and ports; potable water and water treatment facilities; and cultural and recreational facilities.

Governments generally support public infrastructure, which is subset of total infrastructure and refers to assets that provide a service to the public, such as public transit, broadband connectivity, electricity and libraries.

The construction of infrastructure involves a broad range of industries – ranging from natural resources (e.g., mining) and manufacturing (e.g., cement), to engineering and construction.

Does Canada have the right kind of infrastructure to meet current and future needs?

To answer this question, it is important to understand Canada's current state of infrastructure, which can be assessed in a number of ways:

• Stock: Accumulation of an inventory of tangible infrastructure assets over time.
• Investment: Infrastructure spending for the purposes of construction of tangible assets.
• Condition: Standardized scale used to define the current state of an infrastructure asset (i.e., very good, good, fair, poor, or very poor).

Given the changing nature of Canadian society – demographic change, the growth of cities, climate change – understanding current assets cannot tell us whether what we have is what we will need in future.

All asset owners and governments need to be considering how future challenges will impact their need for infrastructure. This can be achieved through asset management practices, and efforts like the National Infrastructure Assessment^{Footnote 1}, which is intended to provide a long-term perspective on Canada's infrastructure needs.

Infrastructure as a shared priority

Infrastructure investments are a shared responsibility, with the federal government generally partnering with other orders of government to invest and deliver public infrastructure.

The public sector owns over two-thirds of infrastructure

• 71% of infrastructure in Canada is publicly owned, but the public share varies by asset.

Provinces, territories, and municipalities play critical roles

• 97% of infrastructure is owned by provinces, territories and municipalities.

Collaboration is key to delivering quality infrastructure

The federal government doesn't own much infrastructure but acts as a funder and supporter of projects.

The Government of Canada plays a major role in funding and administering infrastructure in First Nations on reserve 

The government is partnering with First Nations to advance shared goal of transferring federal programming to Indigenous communities and advance self-determination in infrastructure.

Source: Infrastructure Economic Account (Statistics Canada, accessed July 2023).

Note: Net stock was used as a proxy for ownership. The Federal category includes Defense Services; Provincial/Territorial includes Hospitals, Nursing and residential care facilities, and Educational services. Other industries categories: Indigenous (Aboriginal) and Government Business Enterprises are excluded from this analysis. 

Infrastructure investments have nearly doubled in the last two decades

After stagnating in the late 20th century, real annual investment in infrastructure has nearly doubled from 2002 to 2022.

• Public investment (+82%) has grown more than private investment (+115%). ^{Footnote 2}

As the stock of infrastructure grows from increased investment, the level of depreciation to be addressed by sustained, ongoing investment also grows.

• In 2022, $112B was invested in infrastructure, surpassing depreciation by $25B.^{Footnote 3}
• Investment levels since 2000 have meant that the remaining useful life ratio of all assets in Canada has steadily increased from 51.5 to 58.9 – a significant improvement.^{Footnote 4}

Source: Infrastructure Economic Account (Statistics Canada, accessed March 2023).

Having an understanding of infrastructure average age and remaining service life helps asset owners to inform early planning and management

The average age and remaining useful service life of infrastructure assets have improved from a low point around 2000 and have remained stable since 2017. 

According to the Canadian Infrastructure Report Card, early investment in maintenance and repair, while an asset's service life remains high, can eliminate or delay more costly rehabilitation or reconstruction spending in the future.

Source: Infrastructure Economic Account (Statistics Canada, July 2023 data)

The condition of infrastructure in Canada  

About half of Canada's public infrastructure is in good or very good condition

However, asset condition varies among asset types and owners, and many assets are of unknown condition.

In 2020, the total replacement value of Canada's core public infrastructure was estimated to be $2.15 trillion

More than half (58.8%) of Canada's assets by replacement value are in good and very good condition. 

Approximately 12% of assets are in poor and very poor condition, accounting for $260 billion to replace.

Roads and water infrastructure accounted for over three-quarters of the total replacement value.

Rural municipalities owned most of the municipally owned roads (79.1% by length, excluding sidewalks), but they accounted for only 55.8% of the replacement value.

Source: Canada's Core Public Infrastructure Survey (CCPI), 2020 data (Statistics Canada, accessed March 2023). CCPI primarily samples units at the municipal level, with a census of municipalities with at least 1,000 residents, and a sample of rural municipalities with at least 500 residents. 

Asset management capacity is lower in smaller municipalities, and varies significantly among provinces and territories

There is notable variation in municipalities having a documented asset management plan, depending on their size: 

• 71% of small rural municipalities (i.e., less than 5,000 people) reported a documented plan; the lowest reported group.
• 87.9% of large urban municipalities (i.e., 30,000 people or more) reported a documented plan.

Source: Canada's Core Public Infrastructure Survey (CCPI), 2020

Current and future infrastructure investments are influenced by key economic, socio-demographic and environmental factors

Cross-sectoral impacts of infrastructure - The economy

Beyond construction's immediate impact, infrastructure investment contributes to long-term economic competitiveness

The construction sector is essential to the Canadian economy - accounting for 7% of GDP - valued $152 billion. Households and businesses rely on quality infrastructure to facilitate the creation and transportation of goods, services and people that drive the long-term economic growth.

According to the IMF, in advanced economies, every $1 of public infrastructure investment can boost total economic output by $2.3 after 5 years.

The Global Infrastructure Hub (GIHub)  estimates Canada's average infrastructure investment between 2016 and 2022 to be 2.5% of GDP - is 0.32 percentage points higher than the G7 average. However, more investment is needed to meet infrastructure demand – with the (GIHub) recommending additional annual investment of 0.04% of GDP.

Sources: International Monetary Fund (IMF) and Global Infrastructure Hub - A G20 INITIATIVE

A highly productive construction sector is critical to growing our infrastructure

A strong construction sector is needed to sustain Canada's infrastructure

From connecting the country through advanced transit systems to providing roads, community buildings and wastewater facilities, Canadians rely on the construction sector to build essential and resilient infrastructure. 

As the sector grapples with stagnant productivity, embracing innovative approaches and new technologies can enable the sector to meet growing demands. 

Government transparency on the future of infrastructure will be necessary to foster industry confidence and incentivize the private sector's co-investment for sustained growth.

Key challenges facing the construction sector:

1. Labour shortages
   • The construction sector is experiencing an extremely tight labour market with job vacancies exceeding unemployment rates.
   • Retainment and recruitment are becoming increasingly difficult and meeting Canada's construction labour force needs will require ongoing commitments to apprenticeship programs, training and recruitment. 
   • By 2032, 21%  of the current construction labour force is expected to retire, leaving a cumulative gap of 155K workers to deliver infrastructure projects throughout the decade.
     

     

     *Required growth based on estimates of retirements and a 2.8% average annual growth in real investment
     Source: Economic Analysis and Modelling, INFC
2. Volatile commodity prices and supply chain concerns
   • Volatile commodity prices and supply chain disruptions are forcing the construction sector to grapple with elevated project costs, project delays or abandonment. 

The construction sector is home to high paying jobs but the benefits are not equal across different working groups

Half of infrastructure jobs are concentrated in the construction industry

In 2022, there were 675,400 jobs related to infrastructure in Canada (direct and indirect employment).

Half of the jobs fall under the construction industry, while a third are under information, financial and professional industries as well as distributive trade and transportation.

In direct construction jobs, there were 56.34 million hours worked,  with an average hourly wage of $33.8 (compared to a Canadian average of $31.9) in 2022.

Females had a lower average hourly wage than males. Women earned on average $29.5 per hour, while men earned $34.5 in 2022.

Since 2015, the average wage for the unionized construction worker grew by 11%, driven by higher wages in Quebec and British Columbia.

There is untapped potential to diversify the construction labour force

The inclusion of certain groups to the labour force can help alleviate labour shortages and improve gender and visible minority participation; while ensuring that construction wages are distributed proportionally amongst Canadians. 

Sources: Infrastructure Economic Account; Table 14-10-0037-01; Table 14-10-0064-01 (Statistics Canada)

Construction materials are an integral part of infrastructure delivery and subject to volatility

Key commodities such as cement, steel, lumber and aluminum form the foundation of infrastructure projects

Cement is used in the construction of public transit railways; it is essential for building water treatment plants and is a main ingredient in concrete for residential building foundations.

Steel is utilized in the manufacturing of rail tracks and train stations. It is important for pipelines and pumping stations in water infrastructure as well as for structural frames in building and residential construction.

Aluminum is used in the manufacturing of buses and subway cars, while being an important element in ensuring water infrastructure's resistance to corrosion.

Lumber is used in residential construction for framing as well as exterior and interior finishes.

Prices of construction materials are largely set by global markets and international supply and demand

Increased demand from large countries (e.g. China, U.S.) creates competition for resources and drives prices up.

Supply chain bottlenecks caused by transportation disruptions can lead to price fluctuations.

Extreme climate events (e.g. wildfires) can also have an impact on material availability and costs.

Commodity prices for construction materials are inherently volatile

Factors contributing to volatility include:

• Changes in global economic conditions
• Geopolitical events and trade policies
• Fluctuations in supply and demand dynamics

As such, volatile prices can force the construction sector to grapple with elevated project costs, project delays or abandonment. 

Sources: Trading Economics, FRED Economic Data

Cross-sectoral impacts of infrastructure - The environment

Infrastructure is crucial to mitigating and adapting to climate change

Infrastructure is highly affected by climate change – natural disasters are more frequent and severe

Resilient infrastructure can better withstand and protect communities from impacts of climate change.

Use of climate-resilient infrastructure offers much potential to reduce risk

Data, guidance, standards and codes can help inform how infrastructure is located, designed, built and operated – to adapt to a changing climate.

Sources: Canadian Disasters Database (Public Safety Canada, 2023); Canada's Top Climate Change Risks (Council of Canadian Academies, 2019).

Resilient infrastructure requires efficient designs and planning

In 2019^{Footnote 5}, transportation and buildings account for approximately 38% of all greenhouse gas emissions

What is built defines the range of options available to individuals and companies (e.g., transit vs. roads).

How infrastructure is built defines the baseline emissions level, as inefficient designs become "locked in". More efficient future designs are expected to reduce the operational emissions intensity of infrastructure. Current estimates suggest that future efficient designs will reduce operation emissions to 50% from the current level of 89%.

Overall, the percent of municipal owners of infrastructure in Canada that consider climate change mitigation and adaptation in their decision-making process remains low, at less than half of owners for most asset categories.

Sources: Greenhouse Gas Emissions (Environment and Climate Change Canada, 2021); GHG Emissions from Building Construction (Green Construction Board, 2014); Canada's Core Public Infrastructure Survey (CCPI)

Environmental improvements are being made during the construction of infrastructure assets

As investment increases, so do the levels of GHG emissions

However, greenhouse gas emissions per value added to the Canadian economy has decreased since 2009, suggesting that environmental improvements are being made during the construction of these assets.

Since 2009, the proportion of infrastructure industries' clean inputs have increased reaching a high of 4.6% in 2022. Environmental and clean technology inputs have increased from $1.57 billion in 2009 to $3.73 billion in 2022.

• The proportion of clean input assesses whether an infrastructure asset was constructed using environmental and clean technology inputs (a process/product/service that reduces environmental impacts).

Source: Infrastructure Economic Accounts (Accessed July, 2023)

Cross-sectoral impacts of infrastructure - Our communities

Infrastructure impacts a community's ability to participate in the economy and provides opportunities to undeserved populations

Connectivity is an essential service and a prerequisite to participate in the digital economy:

• There is still a large gap between those households with access to ultra fast speeds (Gigabit internet) and those without.

Strong communities requires easy access to social and health services, including high levels of proximity to public transportation in Canada's metropolitan areas:

• Canada's largest metropolitan areas have the most convenient proximity to public transportation at over 80% of the population within 500m of public transit.
• Convenient access to public transport is generally lower in smaller metropolitan areas.

Source: CRTC Communications Monitoring Report (Accessed July, 2023);

Statistics Canada. Table 23-10-0309-01  Convenient access to public transport by geography

The state of infrastructure – A summary

Canada's infrastructure stock has grown to over a trillion dollars over the last decade.  Ongoing investment is needed to offset the effects of depreciation.

To address climate change, improve social inclusion, and support a higher standard of living for Canadians, ongoing partnerships with other levels of government, academia and the private sector are necessary.

Further strengthening infrastructure data and evidence, through partnerships with various data owners including provinces, territories, municipalities, will serve infrastructure decision-makers now and into the future.

Part B: The state of housing

An overall picture f housing tenure in Canada

While the rate of homeownership in Canada has been decreasing in the last decade, this has been from historical highs.

The homeownership rate for Canada is comparable to other select countries and the OECD average.

There are differences in homeownership rates across provinces, but these differences are driven more by historical tenure preferences (e.g., Québec with higher rental preference) and urban/rural differences across provinces.

Source: OECD, Housing Tenures, country reporting 2017-2020

Source(s): Census of Population, 1971 to 2021 (3901), and National Household Survey, 2011

Source: Statistics Canada, Census of Population 2021

Canada's housing system has long targeted homeownership

From the early 1980s until recently, condominiums and other secondary options were the market response to rental demand.

Construction of purpose-built rental structures has declined significantly since the '60s and '70s. This has been linked to the rise of 'condominiums' as a housing type, changes in the tax code removing incentives to build rental structures, rent-control legislation, and increased macroeconomic stability.

The size of Canada's social rental housing stock (approximately 4%) is also comparatively low compared to other G7 countries, which contributes to upward demand pressures on the private rental market. 

Source: CMHC Starts and Completions Survey

Source: OECD, Affordable Housing Database

Current and future housing supply challenges in perspective

There is already a significant housing supply gap in Canada, based on historical patterns, which is a major driver of Canada's housing affordability challenges. Presently that gap is approximately 2 million homes. By 2030, it is estimated that this will increase to over 3.5 million more homes required in addition to business as usual. 

Source: CMHC calculations. See Canada's Housing Supply Shortages: Estimating what is needed to solve Canada's housing affordability crisis by 2030

At current rates of new construction, Canada's housing stock will increase by 2.3 million units between 2021 and 2030. This will reach close to 19 million housing units by 2030.

Estimated that over 22 million housing units by 2030 are required to return to historically affordable levels.

The challenge is greater than the money required to build more homes, for example:

• Variable costs. The capital required for 3.5 million additional homes does not account for costs to achieve Net Zero, infrastructure or other costs.
• Skilled labor shortages. Under a best-case scenario, labour capacity exists only to increase housing starts activity across all four major provinces between 2022 – 2030 but not enough to close the gaps. 

Short-term outlook not favourable to increasing supply

Source: CMHC Housing Starts and Completions Survey, CMHC Forecast

Housing starts to decline significantly from 2021 and 2022 record levels. This outlook will likely put additional stress on the significant housing supply gap (the number of housing units required to restore affordability by 2030).

Higher interest rates will likely worsen supply-side challenges. Higher financing costs may impede new developments while potentially discouraging condominium investors' supply of units to the secondary rental market.

Labour shortages and other construction costs also continue to impede housing starts, exacerbating shortfalls in housing supply.

Rental supply outpaced by demand

Even though supply of purpose-built rental structures has increased over the last five years, it still falls short of demand as reflected by lower vacancy rates. Further, recent upticks in new supply may be short lived, with many projects with financing previously secured and credit availability constraining new starts. 

Source: CMHC

Source: CMHC

Canada total includes all centres of 10,000+ population

Rental market tightening as population and ownership prices grow

Demand for rental housing has been driven by household formation and likely downward pressures from the ownership segment (as people unable to afford to buy choose to rent for longer). This, combined with years of undersupply in the purpose-built segment and reliance on the secondary market for rentals have contributed to the upward pressures on rents.

Source: CMHC Rental Market Survey (F) CMHC Forecasts

Source: Statistics Canada

Rental cost as measured in the consumer price index (CPI)

Choices for low-income renters are limited

Affordable units for low-income renters in the primary rental market are extremely rare outside of Quebec. This is a result of an extended period of very low purpose-built rental activity. This puts downward pressures on affordable and social housing options and increases the potential of further marginalization of populations already in vulnerable positions.

Source: CMHC

** Data suppressed because the affordable universe is too small and/or to preserve data reliability.

Incomes for the lowest quintile population, their maximum affordable rent, and current average rents by select CMA

Census Metropolitan Areas	Low-income cut-off for lowest income quintile	Maximum affordable monthly rent	Average One-Bedroom Rent (2022)
Montréal	$30,000	$749	$912
Edmonton	$36,000	$899	$1,070
Regina	$32,000	$799	$988
Saskatoon	$32,000	$799	$1,026
Calgary	$36,000	$899	$1,222
Winnipeg	$27,000	$674	$1,056
Halifax	$28,000	$699	$1,156
Victoria	$29,000	$724	$1,341
Vancouver	$29,000	$724	$1,543
Toronto	$28,000	$699	$1,527
Hamilton	$28,000	$699	$1,198
Ottawa	$28,000	$699	$1,347
Source: CMHC Rental Market Survey, Statistics Canada, CMHC Calculation

The rental market is also challenged by age of stock and source of supply

Two characteristics of rental markets will challenge stability and infrastructure – the age of the purpose-built rental stock and the reliance on condominiums and the secondary market to fill rental demand.

Structures will deteriorate with age and will therefore require maintenance and sometimes extensive renovation. The existing stock of purpose-built rentals in Canada is old.

There was a significant slowdown in the rate of rental construction after 1980, which has been attributed in large part to monetary policy in 1980s; the introduction of condominiums as a form of tenure; and/or changes in tax provisions in early 1980s.

Purpose-built rental units are often considered a more stable option for rental markets compared to rented condominiums or other alternatives:

• Long-term focus: Developers and operators typically have a long-term focus on the rental market. Building and renting is done with the intention of renting over extended periods.
• Standardized rental policies: Often have more standardized rental policies and lease agreements than in the secondary rental space.
• Maintenance and repairs: Typically, have dedicated maintenance staff to ensure maintenance and repairs are assessed and addressed.
• Supply and demand dynamics: Purpose-built rental units are often built in response to specific market demand for rental housing.
• Stable rental pricing: These units generally offer more stable rental pricing where alternatives such as rented condominiums can be subject to individual investor discretion.

Source: CMHC Rental Market Survey, Statistics Canada Census 2016, CMHC estimate

Who is being impacted by the rental supply challenge?

Continued deterioration in market conditions has made rental affordability even more challenging, particularly for households experiencing vulnerabilities. 

Note: New households looking to rent, households moving within the rental market, or households transitioning from non-market to market, are facing significantly higher price growth compared to average.

Between 2021-22, 13.6% of rental units turned over in Canada. While average rents increased 2.9%, rents in turnover units increased by 18.3% (CMHC Rental Market Report, January 2023).

Aging social and affordable housing stock

Close to a quarter of a million households are on a social and affordable housing wait list, 2/3 of which have been waiting two years or longer. Close to 1/3 of social and affordable housing is in need of repair.

• In 2021, approximately 623,000 households in Canada lived in social and affordable housing (i.e., non-market rental housing).
• This represents over 1 in 10 renter households (11.9%).
• Close to 227,100 households were on a wait list for social and affordable housing in 2021, which represents a 13% decrease from 2018 (262,000). Of those on a waitlist, nearly twice as many households reported waiting two years or longer compared with those waiting less than two years.
• In 2021, close to a third of social and affordable housing units (32.8%) were in need of repair (22% minor repair, 10.8% major repair). As context, 53% of the stock was built before 1980.

Sources: Statistics Canada, Housing challenges remain for vulnerable populations in 2021; Statistics Canada Housing suitability and dwelling condition, by tenure including social and affordable housing

Core housing need is higher in certain regions and populations

A household is in Core Housing Need (CHN) if: i) its housing does not meet one or more of the affordability, adequacy or suitability standards, and ii) it would have to spend 30% or more of its before-tax income to access local housing that meets all three standards.

While the national average rate of CHN decreased from 2016 to 2021, the rate of CHN in the territories, ON, and BC remained well above the national average. 

The rate of unaffordable housing declines between 2016-2021, especially among lower-income renters, was largely because of temporary income supports and COVID-19 benefits on household incomes.

Nunavut had the highest rate of CHN at over 3 times the national average.

Racialized groups, Indigenous people and female lone parents remain the highest populations in CHN.

The state of housing – A summary

The challenges surrounding housing affordability and supply are complex, multi-jurisdictional, and beyond any individual organization or government's capacity to address. 

While the government has committed significant resources to achieving housing goals, these issues continue to evolve and challenge the government's existing approaches.

There have been renewed calls for stronger federal governance and coordination for housing and homelessness policy from key actors such as the Office of the Auditor General, the Federal Housing Advocate, and the National Housing Council.  

There is no simple solution when it comes to housing, and the federal response has to pull on the various levers at our disposal, including immigration, skills programming, tax policy, infrastructure investments, and many more. 

Housing is a provincial/territorial jurisdiction and we will need to work with all orders of government (PT and municipal), as well as with the private and non-profit sectors to address the housing needs of Canadians. 

Key housing terminology

Affordability/
Affordable Housing

In Canada, housing is considered "affordable" if it costs less than 30% of a household's before-tax income. "Affordable housing" is a very broad term that can include housing provided by the private, public and non-profit sectors. It also includes all forms of housing tenure: rental, ownership and co-operative ownership, as well as temporary and permanent housing.

Social/ Community Housing

An umbrella term that typically refers to either housing that is owned and operated by non-profit housing societies and housing co-operatives, or housing owned by provincial, territorial or municipal governments.

Core Housing Need

A household is in core housing need if its housing does not meet one or more of the adequacy, suitability or affordability standards and it would have to spend 30% or more of its before-tax income to pay the median rent (including utility costs) of alternative local market housing that meets all three standards:
Affordable (see above)
Adequate – Housing does not require any major repairs, according to residents. Major repairs include those to defective plumbing or electrical wiring, or structural repairs to walls, floors or ceilings.
Suitable – Housing has enough bedrooms for the size and make-up of resident households, according to guidelines outlined in National Occupancy Standard.

Purpose-Built Rental

Housing built specifically for long-term rental accommodation.

Part C: The state of homelessness

Key definitions

Homelessness ^{Footnote 6}

The situation of an individual or family who does not have a permanent address or residence; the living situation of an individual or family who does not have stable, permanent, appropriate housing, or the immediate prospect, means and ability of acquiring it.

• Often the result of systemic or societal barriers, including a lack of affordable and appropriate housing, the individual/household's financial, mental, cognitive, behavioural or physical challenges, and/or racism and discrimination.

Chronic homelessness ^{Footnote 7}

Refers to individuals who are currently experiencing homelessness AND who meet at least 1 of the following criteria:

• they have a total of at least 6 months (180 days) of homelessness over the past year; or
• they have recurrent experiences of homelessness over the past 3 years, with a cumulative duration of at least 18 months (546 days).

Despite significant federal investments, homelessness is increasing

More people are experiencing homelessness

In communities that participated in the last two nationally coordinated Point-in-Time counts, there was an 20% increase in the number of people experiencing homelessness between 2017-2018 and 2020-2022.

More than three quarters of these communities observed an increase in unsheltered homelessness (e.g. staying in encampments). In fact, unsheltered homelessness has nearly doubled across the country.

People are staying in shelters for longer periods

Between 2005 and 2020, the number of people using shelters decreased, but shelter stays got longer.

Between 2020 and 2021, the total number of shelter users increased and the stay lengths continued to increase.

People accessing family shelters stayed longer (67.1 days) compared to youth (49.1 days) and general shelter users (48.4 days).

Chronic homelessness in shelters has increased

Between 2016 and 2021, the number of shelter users experiencing chronic homelessness remained consistent despite reductions in total shelter users. 

These figures underestimate total chronic homelessness, as data relies on shelter use and not other forms (e.g., unsheltered, hidden homelessness).

National shelter capacity

40% of the capacity of the emergency shelter system serves adults of all genders

An additional 26% specifically serves men, 10% serves women, 17% serves families, and 7% serves youth.

The COVID-19 pandemic impacted emergency shelter capacity

Over the first months of the COVID-19 pandemic, shelter bed capacity reduced by approximately 21% across jurisdictions before showing signs of recovery by December 2021.

Other permanent shelter capacities have seen continuous growth between 2019 and 2021

Transitional housing facilities have increased by 31% (from 346 to 452) and total beds increased by 6% (from 7,694 to 8,150). 

Domestic violence shelters have increased by 12% (from 545 to 612) and total beds increased by 16% (from 7,925 to 9,197).

Province and territory	Shelters		Beds
	2020	2021	2020*	2021
Newfoundland and Labrador	14	14	125	118
Prince Edward Island	2	3	18	26
Nova Scotia	11	11	243	230
New Brunswick	8	9	253	323
Quebec	74	92	1,658	2,009
Ontario	160	157	7,351	6,793
Manitoba	16	19	436	484
Saskatchewan	15	16	407	329
Alberta	30	26	2,784	2,254
British Columbia	79	81	2,534	2,456
Yukon	3	3	59	39
Northwest Territories	3	3	88	65
Nunavut	3	3	53	59
Canada	418	437	16,009	15,185
*2020 shelter and bed data is for February 2020. By August 2020 the number of permanent emergency beds available was approximately 21% lower. However, many shelters were able to extend their services to temporary bed capacity locations such as leased hotels/motels and permanent. Shelter capacity data for 2022 will be released by the end of fall 2023.

Homelessness in Canada: 2020-22 Point-in-time counts

Experiences of homelessness go beyond shelter use (e.g., couch surfing, rough sleeping, lack of access to shelters in rural communities, etc.). Nationally-coordinated Point-in-Time counts and surveys provide information on homelessness outside of shelters. Nearly one in four respondents to the 2020-22 survey^{Footnote 8} reported that they did not use a shelter in the past year (24%).

Counts took place between March 2020 and December 2022, due to the COVID-19, pandemic. Previous counts took place in 2016 and 2018.

Homelessness in Canada: Demographics

Indigenous persons are overrepresented (and still likely underestimated) among the homeless population, representing 39% of shelter users, but comprising 5% of the Canadian population.

Over 10% of shelter users moved to Canada as a newcomer, either as an immigrant (9.5%), refugee (1.7%), or refugee claimant (2.2%).

Men, older adults, Canadians, veterans, and Indigenous shelter users are more likely to experience longer forms of chronic homelessness, whereas women and youth are more likely than other groups to use shelters extensively over a shorter period.

One in four (25%) youth responding to Point-in-Time counts identify as 2SLGBTQI+. The proportion is smaller among older age groups, accounting for 13% of adults, 6% of older adults, and 6% of seniors.

In addition, 1 in 20 people experiencing homelessness identify as veterans of the Canadian Armed Forces and RCMP, and tend to be older than non-veterans.

Economic trends and contributing factors to homelessness

Homelessness policy intersections

Homelessness in Canada: Pathways into homelessness

Homelessness is generally caused by one or a combination of factors^{Footnote 9}: 

Structural factors, such as economic and societal issues that affect opportunities, environments, and outcomes for individuals.

• Includes poverty, discrimination, lack of affordable housing, and the impact of colonialism, intergenerational trauma and racism against Indigenous peoples.

Systems failures, where support services are inadequately delivered.

• Includes barriers to accessing public systems, and failed transitions from publicly funded institutions.

Individual and relational factors where personal circumstances can lead to homelessness.

• Includes crisis situations, mental health and addiction, housing insecurity, and interpersonal and intimate partner violence.

Factors that contribute to housing loss vary by age group:

Insufficient income for housing is the most common reason identified by adults and seniors, and is also commonly cited by youth.

Conflict with a parent/guardian is the most common reason noted by youth.

Substance use issues are also commonly cited across age groups, though this is most prevalent among adults (25-49).

Most common reasons for housing loss by age group

The state of homelessness – A summary

Homelessness is a significant and complex challenge in Canada. It persists despite significant federal investments, and its impacts were exacerbated by the COVID-19 pandemic and rising housing costs.

Although there are many reasons Canadians experience homelessness, the main cause is insufficient income to pay for housing.

The federal government does not hold all the levers to fix this. Preventing, reducing and ultimately ending chronic homelessness will require active participation both across federal institutions and from all levels of government, non-profits organizations and civil society as a whole.