Toronto Encampments: Are Tiny Homes the Answer?
Canadian Real Estate: Ontario Housing Solutions in 2025

Toronto Encampments: Are Tiny Homes the Answer?

As Canada’s housing crisis deepens, thousands of Ontarians are forced to endure harsh weather conditions in makeshift tent encampments across public parks and ravines. Ironically, homelessness was once illegal in Canada. Under the country’s former vagrancy laws, anyone deemed “loose, idle, or disorderly” could be fined $50 or imprisoned for up to six months. While those laws have been repealed, today’s crackdowns on encampments suggest a new era of “neo-vagrancy” laws, measures that don’t explicitly ban homelessness but, in effect, criminalize it. In a recent ruling, Ontario’s Superior Court upheld the City of Hamilton’s bylaw prohibiting tents in parks, with the judge stating that while the public is “generally sympathetic to the homeless, it tires of seeing its public spaces appropriated by lawless, unsanitary encampments.” Meanwhile, the proposed Safer Municipalities Act of 2024 seeks to increase penalties for repeat trespassers, though it has yet to be passed into law.

Amid the crisis, a Toronto resident took matters into his own hands. Ryan Donais began building tiny homes, complete with heating, electricity, smoke and carbon monoxide detectors, and fire extinguishers to provide a safer alternative for those without shelter. Each unit costs about $10,000, funded through donations via GoFundMe. According to CBC, a homeless woman who received one of these homes described it as the warmest and safest she’s ever been. Previously, she resorted to lighting fires in her tent just to stay warm at one point, accidentally burning it down.

But no good deed goes unpunished. Grassroots solution was met with resistance and the City of Toronto issued Donais a cease-and-desist letter, arguing that the shelters unlawfully occupied city property and violated municipal codes. In response, Tiny Tiny Homes, Donais’ nonprofit, pointed out that the units have in-built safety features, are mobile and not fixed to any specific location. While the organization has paused construction for now, the debate remains unresolved.

Mayor Olivia Chow's office emphasized a broader strategy to address homelessness, stating that she "remains focused on a comprehensive solution by building more homes, protecting existing rental units to prevent homelessness, and tackling mental health and addiction challenges." In a positive step, the mayor confirmed that, for now, no tiny homes will be removed from Toronto parks, ensuring those already sheltered can remain safe while longer-term solutions are developed. But that’s cold comfort to the thousands still without shelter. Toronto’s emergency housing system is at a breaking point, with 11,780 people experienced homelessness in the past three months. An average of 114 people were turned away from shelters every night last December, and the city shelters are effectively full.

In October 2024, before winter even began, the Toronto Star warned that the city’s shelter expansion plan wouldn’t be enough. The plan? Adding 530 temporary beds through warming centers and existing shelters. The result? In September alone, 223 people were turned away from shelters every single day, a clear sign that demand is far outpacing supply. Toronto Shelter Manager Gord Tanner has argued that emergency shelters and warming centers are not long-term solutions, permanent housing with support services is. But if that’s the goal, what’s stopping it from happening? Where is the affordable housing that’s been promised for years?

For many homeless individuals, the problem isn’t just about affordability, it’s about capacity to live independently. A staggering 77% of Toronto’s homeless population struggles with mental health issues, including addiction, depression, and psychotic disorders. Treatment and rehabilitation take years, requiring resources and institutional support that the city has yet to prioritize. Slightly cheaper rent won’t change this reality. If encampments are banned, and shelters are full, what’s the city’s plan? “Affordable housing” sounds great in theory, but until it exists, it’s just a slogan.

Canada is one of the wealthiest nations on Earth, blessed with abundant natural resources, a skilled workforce, and a high standard of living. And yet, in Toronto, one of its most prosperous cities, encampments are now a fixture of public parks. This isn’t just a housing crisis. It’s a failure of governance.

We cannot allow homelessness to become an accepted reality. A society is only as strong as its most vulnerable members. If the City of Toronto truly believes in a “people-first” approach, then it’s time for meaningful action, beyond press releases and distant housing plans. Because for those sleeping on Toronto’s frozen streets tonight, 2033 might as well be a lifetime away.


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