Supportive Housing: Part I
In today’s sociopolitical climate, many issues, perhaps most, quickly become divisive. People choose a position, dig in, and often remain committed to their view regardless of the facts, sometimes even seeing those who disagree as opponents rather than fellow citizens.
Supportive housing has become such an issue in Sarnia.
In this article, I discuss, in general terms, an economic perspective that people on both sides of this debate may wish to consider.
On April 27, 2025, Burlington Today published an article entitled “Ontario Government Sat on a Supportive Housing Report Showing Major Cost Savings.” This report recounted an article originally authored two days earlier by Charlie Pinkerton of The Trillium entitled, “More supportive housing could help Ontario's health system, government-hired firm found.”
The report said the Ministry of Municipal Affairs and Housing hired consulting firm KPMG to conduct a cost-avoidance study on supportive housing. This resulted in a final report submitted in May of 2022 but was not publicly released.
The author had to submit a Freedom of Information (FOI) request and received a partially redacted version from the Ministry.
The findings of the KPMG report were cited in the article as follows:
“Three of four case studies of supportive housing projects demonstrated a positive cost offset” (Indicating costs avoided were greater than costs associated with supportive housing.)
Supportive housing delivers a strong return on investment, generating savings of $1.60 to $2.00 for each dollar spent on supportive housing. (Cost avoidance related to overuse of existing services such as health care; supportive housing leads to a decrease in hospitalization and emergency room visits).
Pinkerton reports that further to the KPMG report, Addictions and Mental Health Ontario (AMHO) released a report titled Unlocking Solutions in 2025, citing:
9% of patients admitted to hospital in mental health facilities are classified as “alternative level of care (ALC).” (This means they are no longer in need of inpatient services but are still there as alternatives do not exist.)
It costs $730.00 to $1200.00 per day to care for an ALC patient in a hospital.
Supportive housing to address mental health and addiction issues costs about $75.00 to $150.00 per day.
Of 36,000 people on supportive housing waitlists, about 1,000 are successful per year in getting a placement.
Increasing access to supportive housing for people needing mental health and addiction treatment “would reduce hospital congestion, improve care continuity and generate substantial cost savings.”
These figures illustrate how a shortage of supportive housing has a negative impact on expenses related to our health care system.
There is another part of our system that unhoused people suffering from addiction and mental health issues may find themselves in: The justice system.
According to Statistics Canada, the average daily cost to house a person in federal, provincial or territorial custody (2023 figures) is $319.00.
To summarize the cost per day for one person:
· Inpatient in medical facility: $730.00 - $1200.00
· Jail: $319.00
· Supportive Housing: $75.00 - $150.00
Any meaningful conversation about supportive housing should take these figures into account.




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