New AHANS Study Finds Supportive Housing Offers a More Effective and Cost-Efficient Response to Homelessness
Updated: 11 hours ago
Homelessness in Halifax Regional Municipality is placing growing pressure on individuals, communities and public systems. Our new study examines the costs of current responses to homelessness and finds that investing in supportive and deeply affordable housing can provide better outcomes while reducing pressure on emergency, healthcare, and justice systems.
The report, Costs of Homelessness in HRM: Benefits of Supportive Housing, draws on local service provider data, stakeholder engagement, government information, and existing research to compare the costs of emergency shelters, supportive housing, and deeply affordable housing with the broader costs associated with homelessness.
The analysis comes as homelessness in HRM continues to grow. The 2024 Point-in-Time Count identified at least 1,132 people experiencing homelessness on a single night, including more than 120 children. This figure represents a minimum number of individuals, and homelessness has become increasingly complex, with many people experiencing overlapping barriers related to health, mental health, substance use, trauma, and involvement with the justice system.
The Cost of Responding to Homelessness
Emergency shelters play an essential role in keeping people safe during a crisis. However, they are designed to provide short-term accommodation rather than long-term housing stability.
The figures are based on local provider data and public-sector cost estimates. While the report notes limitations in the available data, it describes the results as conservative estimates that provide a locally grounded comparison of different responses to homelessness.
Housing can Reduce Pressure on Other Systems
The costs of homelessness extend well beyond shelter.
People experiencing homelessness can face increased interactions with hospitals, emergency departments, and correctional services. Without a safe place to live, health conditions can become more difficult to manage, and people can become caught in cycles between shelters, hospitals, police custody, and other temporary settings.
The report estimates the cost of a hospital bed in HRM at $210 per day, or approximately $6,300 per month. It also estimates the daily cost of holding an individual in a Nova Scotia correctional facility at $319 per day, or $114,840 annually.
Supportive housing offers a different approach.
Rather than providing accommodation alone, supportive housing combines permanent housing with individualized supports. Depending on a person's needs, these can include case management, healthcare access, mental health and addiction supports, assistance with daily living skills, and employment services.
The study points to evidence from the Halifax Housing First Initiative showing that housing can significantly reduce the use of emergency and justice services. Among Housing First clients, the number requiring even one emergency room visit fell by nearly 29% over 12 months, while inpatient hospital admissions decreased by more than half. Police contacts fell by 63%, and time spent in police custody decreased by 64%.
Supportive Housing is an Investment in Stability
The benefits of supportive housing are not limited to reduced public costs.
The report finds that 80% or more of supportive housing clients remain housed for extended periods, helping people move away from repeated shelter stays, hospitalizations, and justice-system involvement. Stable housing can also support improved health, stronger connections to community and family, greater independence, and increased access to primary care and other services.
The study also highlights evidence that every $1 invested in supportive housing can generate at least $2 in government savings, with some local analyses finding as much as $9 in broader community benefit when factors such as employment, child welfare, and family stability are considered.
Affordable housing is critical to preventing homelessness
Not everyone experiencing or at risk of homelessness requires intensive supports.
For people whose primary barrier is income, deeply affordable housing can prevent homelessness before someone ever enters the shelter system. The report identifies insufficient income for housing as a significant driver of homelessness, with 39% of people surveyed in the 2024 Point-in-Time Count identifying it as the main cause of their most recent housing loss.
The shortage of deeply affordable housing also affects the flow through the broader homelessness system. Without affordable homes available for people who no longer require intensive services, shelters can become overcrowded, and people can remain in more expensive and inappropriate forms of accommodation for longer than necessary.
As of September 2025, Nova Scotia's public housing waitlist had reached 8,267 applicants, including nearly 3,545 living in HRM. At the same time, vacancy rates for rental units affordable to the lowest-income households remained below 0.5%, highlighting the gap between the need for affordable housing and the available supply.
Moving from crisis response to long-term housing
The study makes clear that emergency shelters remain an important part of the homelessness response. They provide critical safety and crisis support for people who have nowhere else to go.
But shelters alone cannot resolve homelessness.
The findings point toward a broader approach that includes prevention, deeply affordable housing, supportive housing and coordinated services across housing, healthcare, justice, and social systems.
For AHANS, the study reinforces the importance of investing in housing as a long-term public priority. Permanent housing with appropriate supports can reduce pressure on emergency systems, improve outcomes for people experiencing homelessness and make better use of public resources.
The report also identifies a need for stronger, more integrated data across housing, healthcare, justice, and social services. Better data will help communities understand the full cost of homelessness, measure outcomes over time and make informed decisions about where investments can have the greatest impact.
The evidence is clear: responding to homelessness requires more than emergency measures. Investing in the right housing, at the right level of support, can create greater stability for people and better value for our communities.
The full report, Costs of Homelessness in HRM: Benefits of Supportive Housing, was commissioned by AHANS and prepared by ATN Strategies in June 2026.
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