Smarter Canada Housing Benefit Could Reduce Homelessness by Over 60%, New Analysis Finds

OTTAWA, ON, July 14, 2026 /CNW/ -- The Canadian Alliance to End Homelessness (CAEH) today released a new report proposing a redesign of the Canada Housing Benefit that could reduce homelessness by more than 60% within two years of implementation and deliver housing security for nearly a million Canadians at imminent risk of homelessness.

According to federal data, homelessness in Canada has nearly doubled and unsheltered homelessness has exploded since the release of Canada's first National Housing Strategy in 2017. This trajectory will continue without significant changes to the next national housing strategy, currently under development in Ottawa.

"The Canada Housing Benefit is the single most powerful and immediate homelessness prevention tool at the federal government's disposal," said Tim Richter, President and CEO of the Canadian Alliance to End Homelessness. "Nearly a million Canadians are living on a knife's edge, where there just isn't enough to cover their rent and basic needs. When the costs keep going up, one bad month can mean losing everything."

While Canada is experiencing a rental construction boom, and overall rental affordability is starting to improve, CMHC data shows that the average price for the lowest-cost rental units in a typical Canadian community is nearly double what a low-income earner can reasonably afford, and vacancy rates for these units are persistently low. As global instability drives up the cost of food, energy, and other basic necessities, more Canadians are finding themselves faced with impossible choices.

"Housing is ultimately the solution to homelessness, but building enough deeply affordable housing will take years. A reimagined Canada Housing Benefit could stop homelessness before it begins for hundreds of thousands of Canadians and reverse the lethal trajectory of homelessness in our country right away," Richter said.

The report, commissioned by the CAEH and completed by Blueprint, analyzed what would happen if the benefit were redesigned to focus on people whose incomes genuinely leave them unable to afford the basics, and provide them with amounts that would realistically keep them in their homes. The results are significant. A redesigned benefit could lift 769,000 households above homelessness risk. Modelling the impact on current homelessness data in three key regional centres (Edmonton, Toronto, and St. John's) showed this approach would reduce homelessness by as much as 63% within two years of implementation.

This represents a new approach to housing benefits and homelessness prevention based on what's called the 'Homelessness Income Cut Off.' Created by Ron Kneebone and Margarita Wilkins at the University of Calgary School of Policy Studies, the Homelessness Income Cut Off (HICO) is a data-driven benchmark that measures the absolute minimum income an individual or family needs to keep their housing and avoid homelessness after cutting all non-essential spending and exhausting resources at their disposal.

The HICO-based approach addresses issues with the current Canada Housing Benefit, which is not consistently targeting those at greatest risk, is insufficient for the surging need in Canada and delivers amounts that are too small to bridge the gap between what low-income renters earn and the cost of living.

"Homelessness is not inevitable; it is a policy choice. By reworking this one tool, we can quickly and effectively reduce homelessness in a way that Canadians will feel and see in their communities," said Richter.

The Canada Housing Benefit is set to expire with the National Housing Strategy in 2027/28. The federal government is in active discussions on the future of national housing and homelessness policy and is expected to unveil an updated strategy in the fall. CAEH has developed a series of five recommendations for the next national housing strategy, to focus on reducing homelessness at scale and ending the housing crisis.

"The federal government has a once-in-a-decade opportunity to create a real housing safety net for Canadians while the longer-term work of building more deeply affordable housing continues. Transforming the Canada Housing Benefit is the fastest way to prevent homelessness for hundreds of thousands of Canadians and reduce homelessness in a way that can be seen and felt in the very near future."

Read the full Blueprint report here.

Read more information on the Canadian Alliance to End Homelessness' recommendations for the next national housing strategy here.

About the Canadian Alliance to End Homelessness

The Canadian Alliance to End Homelessness (CAEH) leads a national movement of individuals, organizations, and communities working together to end homelessness in Canada. This includes working directly with more than 60 communities, and advocating across levels of government for the policies and investments needed to prevent and end homelessness.

About Blueprint

Blueprint is a Canadian organization that helps governments make better decisions and strengthen public systems. Blueprint partners with public sector leaders to design, improve, and evaluate policies, programs, and services that improve outcomes while maximizing the value of public investments.

Blueprint works across a range of public policy areas, including employment and income security, housing, community safety and justice, and child, youth, and family wellbeing. Across their work, they apply a systems perspective to help build stronger public systems, more effective policies, programs, and services, and better outcomes for Canadians.

For more information visit: https://blueprint-ade.ca/

SOURCE Canadian Alliance to End Homelessness (CAEH)

Media Contact: Jarrah Hodge, Communications Lead, Canadian Alliance to End Homelessness, 613-294-7572 (mobile), [email protected]