TORONTO, March 4, 2026 – Today, the Financial Accountability Office of Ontario (FAO) released a report that reviews the Government of Ontario’s (the Province’s) subsidized housing programs. These programs, which are provided in collaboration with the federal government and municipalities, assist low- and moderate-income households by providing funding for homeownership assistance, the construction of below-market rent units, rent supplements and rent-geared-to-income (RGI) assistance.
The FAO projects that total spending on provincial subsidized housing programs by all levels of government will increase from $2.0 billion in 2024-25 to $2.2 billion in 2027-28, representing an average annual growth rate of 3.1 per cent. This growth rate is faster than the historical 2.2 per cent average annual growth rate recorded from 2004-05 to 2024-25. However, on an inflation-adjusted basis, the FAO projects that by 2027-28, total real spending on provincial subsidized housing programs by all levels of government will be similar to 2004-05 levels, both at $2.1 billion in 2025-26 constant dollars.
By level of government, municipalities contribute most of the funding for the Province’s subsidized housing programs, averaging 56.8 per cent of total spending from 2004-05 to 2024-25, while the federal government contributed 29.9 per cent and the Province contributed 13.3 per cent. In general, between 2004-05 to 2021-22, the share funded by municipalities increased, while the share funded by the federal and provincial governments decreased, due to the gradual expiration of legacy federal-provincial funding commitments. Starting in 2021-22, the share of spending funded by the federal and provincial governments has increased, while the share funded by municipalities has decreased, due to new federal-provincial spending under the National Housing Strategy (NHS).
The FAO estimates that there were 315,908 households supported by provincial subsidized housing programs in 2024-25. This is an increase from the 303,639 households supported in 2019-20 due to an increase in support under NHS programs, partially offset by lower support under legacy housing programs. Going forward, the FAO projects that the number of households supported by provincial subsidized housing programs will decrease to 314,822 households in 2027-28, the final year of the NHS agreement.
The FAO defines a household as in need of subsidized housing if the household does not live in acceptable housing (the housing is in need of major repairs, has an insufficient number of bedrooms for the household’s size or the cost exceeds 30 per cent of the household’s before-tax income) and cannot afford alternative acceptable housing without subsidized housing support. The FAO estimates that 1,045,263 Ontario households (16.8 per cent of Ontario households) were in need of subsidized housing in 2024-25, of which 315,908 households received support from provincial subsidized housing programs and 729,355 households did not receive support. Of the 315,908 households that received support, 229,970 households received sufficient support to make their housing affordable while 85,938 households continued to face unaffordable housing costs. Overall, the FAO estimates that in 2024-25, 815,293 households (13.1 per cent of Ontario households) were in need of subsidized housing but either did not receive support (729,355 households) or received insufficient support to make their housing affordable (85,938 households).
To learn more, read the full report here.
Quick Facts:
- From 2024-25 to 2027-28, the FAO projects that the number of Ontario households in need of subsidized housing will increase by 87,131 households (8.3 per cent) to 1,132,394 households (17.6 per cent of Ontario households).
- The FAO projects that the number of households that receive sufficient support to make their housing affordable will increase from 229,970 households in 2024-25 to 238,380 households in 2027-28, an increase of 8,410 households (3.7 per cent).
- The FAO projects that the number of Ontario households in need of subsidized housing that either do not receive support or receive insufficient support to make their housing affordable will grow from 815,293 households in 2024-25 to 894,014 households in 2027-28, an increase of 78,721 households (9.7 per cent).
- From 2019-20 to 2027-28, the FAO projects that the number of households that receive RGI assistance, live in below-market rent units or receive homeownership assistance will decrease as these types of supports provided under legacy housing programs expire faster than projected increases under NHS programs.
- From 2019-20 to 2027-28, the FAO projects that the number of households that receive rent supplements will increase due to an increase in this type of support created through NHS programs.
About the FAO
Established by the Financial Accountability Officer Act, 2013, the Financial Accountability Office of Ontario (FAO) provides independent analysis on the state of the Province’s finances, trends in the provincial economy and related matters important to the Legislative Assembly of Ontario.
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For further information, please contact:
Sophia Zhu l 416 931 5498 l SZhu@fao-on.org l fao-on.org