Small and remote Canadian towns face sharp rise in unsheltered homelessness
Unsheltered homelessness has surged in rural and northern communities, overwhelming local services and forcing towns to improvise shelters, firefighting gear and security.
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By Torontoer Staff
Small and remote towns across Canada are seeing rapid increases in unsheltered homelessness, straining services that were never designed for the scale of need. New data and local reports show homelessness has doubled or tripled in some rural communities, and municipal budgets and shelters are being pushed to the limit.
The Association of Municipalities of Ontario reported 85,000 people identified as experiencing homelessness in the province last year. Some 12,800 of them were in rural and northern areas, an increase of 31 per cent for rural communities and 37 per cent for northern communities since 2024.
Numbers and the national snapshot
National point-in-time counts provide a one-day snapshot across dozens of communities. In 2024 nearly 60,000 people in 74 communities were identified as experiencing homelessness on a given day, a 79-per-cent increase from the previous count. The number of unsheltered people, meaning those sleeping outdoors, in tents or in abandoned buildings, rose 107 per cent.
Indigenous people are significantly overrepresented in rural homelessness statistics. In many northern B.C. towns and other rural centres Indigenous residents account for a disproportionate share of people without housing.
What we have is an unparalleled natural disaster unfolding on our streets. It is just at such a state that it is becoming apparent everywhere.
Tim Richter, Canadian Alliance to End Homelessness
How towns are responding
Municipal responses vary from temporary warming centres to capital investments and new shelters. In Bathurst, New Brunswick, officials are moving from a 10-bed shelter to a planned 40-bed facility after 61 people were counted as unsheltered on one night. The city received $1 million from the province for the expansion.
We wanted to make sure we are here for our people that are here locally and if someone from another city comes in, we will not turn them away. When we meet with them, we try to find out: do you have family, do you have friends?
Kim Chamberlain, mayor of Bathurst
In Smithers, B.C., the number of people counted as homeless rose from 29 in 2018 to 77 in the latest count. The town has a visible camp across from town hall, a second community-safety officer, contracted private security, and a new 10-bed shelter. Council is working with BC Housing on a proposed project with 40 supported apartments and 20 shelter beds.
Other municipalities are adapting in practical ways. 100 Mile House invested in a $200,000 firefighting bush truck because unhoused people commonly set up camp in nearby forested areas. Williams Lake added $100,000 a year to policing and hired a wellness co-ordinator. Salmon Arm donated land for a housing project. Yorkton expanded its emergency shelter to meet demand.
- New or expanded shelters and warming centres
- Increased policing and private security contracts
- Targeted capital purchases, such as firefighting equipment
- Partnerships with provincial housing agencies for supportive housing
- Local wellness and homelessness coordination roles
Health, safety and service gaps
Rural services face both practical and clinical limits. Emergency departments are seeing more patients whose needs are rooted in homelessness, mental illness and substance use. Small hospitals and clinics lack the capacity to provide ongoing supports, while social services are often concentrated in larger urban centres.
There is a certain population with severe mental illness that cannot go into Housing First programs or independent living supports, so they get into this vicious cycle in and out of the emergency department. We try our best but we are set up to fail.
Dr. Paul Parks, Medicine Hat Regional Hospital
Researchers and advocates say provincial strategies that focus on larger cities leave many rural communities without options. In Manitoba, critics noted that recent plans emphasise Winnipeg while places such as Thompson, Flin Flon and Portage la Prairie continue to report serious gaps, including encampments in extreme cold and reliance on temporary warming shelters.
For years, people in rural communities would argue about the existence of rural homelessness, and that is no longer an issue.
Terrilee Kelford, Rural Alliance to End Homelessness
Why rural homelessness is rising
Multiple factors are converging: rising housing costs, limited inventory of affordable homes, drug-related harms, and gaps in mental health and addiction services. Small towns have smaller budgets and fewer service providers, so when homelessness rises the response often becomes ad hoc rather than strategic.
Indigenous people are overrepresented among those experiencing homelessness, which means rural responses need to include culturally appropriate supports and partnerships with Indigenous organisations.
What municipal leaders say is needed
Municipal officials and frontline workers call for targeted funding that recognises rural realities, mobile health and outreach teams, supportive housing with on-site services, and regional coordination so small towns are not left to improvise solutions on their own.
Without those shifts, local leaders warn the patchwork approach will continue, with towns adding temporary shelters, policing, and emergency measures while the underlying drivers of homelessness remain unaddressed.
Addressing rural homelessness requires policies that match the scale and specificity of need, including investments in mental health and addiction care, and housing that includes supports. Municipal officials say a regional approach and stable funding are essential to prevent further increases and reduce risks to health and safety.
homelessnessruralhousingmental healthIndigenous
