A new report to the District of Muskoka’s Community and Planning Services and Health Services committees highlights growing pressure on the region’s housing system, even as new units and support programs expand.
Prepared by Manager of Housing Projects Katelynn Hoyda, the report outlines how the District continues to fund and deliver a range of housing programs, including community housing, affordable housing, rent assistance, and homelessness prevention initiatives.
Since the start of the current council term, 49 new social and affordable housing units have been added. Additional expansion is on the way, with six transitional housing units expected to open in Gravenhurst by the end of 2026, and construction planned for 10 more units in Huntsville. Altogether, this represents nearly 10 per cent growth in Muskoka’s community housing system between 2022 and 2027.
Despite the increase, the total number of households served has remained relatively stable since 2022. The report attributes this to the loss of some rent supplement units following the expiration of pandemic-era funding. However, those losses have been partly offset by increased municipal investment in longer-term solutions, including new affordable housing developments and capital incentive programs.
Demand for housing continues to climb sharply. Waitlist data shows a 44 per cent increase in applications for rent-geared-to-income housing between the end of 2023 and early 2026. Affordable housing applications rose even more steeply—by nearly 68 per cent—while market rent housing applications increased by nine per cent.
At the same time, homelessness prevention efforts are seeing significantly higher use. The number of households assisted through the Housing Stability Fund has risen 49 per cent since 2021–22, reaching 902 households in 2024–25. Early 2026 figures suggest that trend is continuing, with more than 250 applications submitted in just the first two months of the year.
In contrast, demand remains low for homeownership and renovation support programs, such as Gateway Muskoka and Ontario Renovates, indicating the greatest pressure remains in rental housing and rent assistance.
The report underscores the ongoing challenge facing Muskoka: while investments are increasing supply and support, demand for affordable and supportive housing continues to outpace available resources.
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What this indicates is that what Muskoka needs is more jobs that pay a wage good enough to afford to rent or maybe even buy a house. Over the years Muskoka has lost many small to medium factories that paid a decent wage. Are our governments doing enough or anything to attract factories back to Muskoka?