As homelessness continues to rise across northern Ontario, a new report is warning that the mental health and addictions system is facing unprecedented strain in the region.
The report, Protecting Northern Ontario for 1.3 cents on the dollar, examines how the integration of housing and health infrastructure supports the region’s $34.6 billion economy. Public health data revealed in the report shows that Northern Ontario experiences mental health and substance use-related emergency department visit rates up to four times higher than provincial averages, alongside significantly higher rates of substance-related harms. These pressures are intensifying as homelessness grows and access to affordable housing and timely mental health care remains limited.
The study shows how under current conditions, homelessness in Northern Ontario will more than double by 2035. It also estimates that a targeted stabilization investment of approximately $435 million, or about 1.3 cents for every dollar generated by Northern Ontario’s economy, could significantly slow the growth of homelessness, reduce pressure on emergency and institutional systems and support a healthier, more stable workforce.
“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.”
The study was conducted by HelpSeeker Technologies, in partnership with the Northern Ontario Service Deliverers Association (NOSDA) and CMHA Ontario.
The report also notes the growing shortage of affordable community housing in Northern Ontario as a key barrier to mental health recovery and housing stability. Average wait times for community housing have increased by nearly 50 per cent since 2023, now exceeding five years in many communities. More than 13,000 people are currently on community housing waitlists across the region.
“For individuals living with mental illness or substance use challenges, long waits for housing – particularly housing with embedded supports – significantly increase the risk of crisis, hospitalization and chronic homelessness,” said Brown-Demarco. “Housing without mental health and addiction supports underperforms and creates higher costs for hospitals, shelters and corrections.”
Evidence shows that integrated, community-based mental health and addictions services paired with housing deliver better outcomes at lower cost. Programs such as assertive community treatment, rapid access addiction medicine clinics, early psychosis intervention, and supportive housing reduce emergency department use, hospitalizations and justice system involvement, while improving stability and recovery.
Northern Ontario plays a critical role in Ontario’s economy, particularly in natural resources, mining and critical minerals development. The provincial government has committed billions to resource development in the region, including investments in critical minerals processing, Indigenous participation and transportation infrastructure. However, the report warns that without adequate mental health, addictions and housing infrastructure, communities will struggle to attract and retain the workforce needed to deliver on major public and private investments.
“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.”
