New research paper examines effectiveness of alternative shelter models

Cover of social-and-financial-cost-of-non-permanent-shelter-systems report.

Press Release May 26, 2026. 

STRATFORD — A research paper from United Way Perth-Huron’s United Housing initiative warns that municipalities’ growing reliance on non‑permanent shelter systems risks entrenching homelessness rather than resolving it.
The Social and Financial Cost of Non‑Permanent Shelter Systems for Addressing Homelessness, written by United Housing Director Kathy Vassilakos and research intern, Maria Erb, finds that municipalities have increasingly turned to temporary shelters as a response to public pressure to do something about homelessness. Unfortunately, the evidence doesn’t support the belief that tiny shelter communities and other similar temporary solutions can effectively help vulnerable individuals transition into permanent housing

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“Temporary shelters may seem like progress to communities wrestling with the issue of homelessness, but the evidence doesn’t support the belief that tiny shelter communities and other similar temporary solutions can help vulnerable individuals transition into permanent housing,” said Vassilakos. “By contrast, research does show that an approach like Housing First is a more effective investment in permanent and supportive housing.”


Housing First is a program designed to eliminate homelessness among individuals experiencing mental health and addiction challenges who are also dealing with chronic homelessness.


A 2024 study in the U.K. examining their first Housing First pilot showed this approach generated an average of £15,880 ($29,197 CAD) per year per person in benefits to both individuals and the larger system. Additionally, Finland reported savings of €40 million ($64.4 million CAD) during the first 12 years of its Housing First program.
When looking at the challenges facing communities around homelessness, the numbers are sobering and underline the need to invest in permanent and supported housing.


In Ontario, more than 81,500 people experienced homelessness in 2024 — a 25 per cent increase since 2022 — with over half classified as chronically homeless. Provincial data shows a large gap between the need and available resources, with just one supportive housing space for every 14 people experiencing homelessness.


Local data reflects provincial trends. Non-profit agencies in Stratford provided support services to 734 people in 2025. Thirty-nine individuals were unable to secure housing due to a lack of available units, and an additional 28 required fully supported housing. In July 2025, at least 148 households in Huron County were experiencing homelessness, with 126 classified as chronic. Similar patterns were seen in June 2025 across Stratford, St. Marys and Perth County, where 144 households were experiencing homelessness and 131 were considered chronic.


The research paper recommends reaffirming Housing First as the foundation of homelessness policy, redirecting funding from the option of short‑term shelter expansion to permanent housing, and advancing supportive housing projects as a more effective and fiscally responsible response.


“In the end, investing in permanent housing instead of creating costly and ineffective temporary systems is the only evidence-based solution to the challenges we face around homelessness,” added Vassilakos.


“We understand that for certain groups, including women escaping intimate partner violence and vulnerable youth, there remains a need for emergency shelters so it’s not a matter of dismissing them completely. But if we keep investing in temporary fixes, we risk losing an opportunity to build long-term solutions. We need to shift our thinking toward making sure people who need housing get it and can keep it for years to come.”


While the paper does not address the need for investments in homelessness prevention, that is a focus of United Way Perth-Huron (UWPH)’s work, both through internal programs as well as partners offering programs as diverse as mental health counselling, access to nutritious food and support connecting individuals with the programs and services they need.


“There is a clear need for permanent housing and there are community partners, including United Housing, working toward that goal,” concluded Vassilakos. “But it’s also important to help people before they find themselves vulnerable and in need of housing. That’s why UWPH’s work both through internal programs and our partners remains critical to addressing the upstream causes of homelessness, and why the organization’s annual campaign remains such a vital part of the region.”

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