Last Updated On 28 July 2025, 3:08 PM EDT (Toronto Time)
In a nation grappling with a housing crisis, the staggering $1.1-billion price tag for housing asylum seekers in hotels since 2017 has ignited fierce debate across Canada.
This massive expenditure, coupled with an additional $1.5-billion funnelled to provinces and municipalities to support refugee claimants, has raised eyebrows and fueled public frustration.
As asylum claims skyrocket and hotel rooms become makeshift shelters, Canadians are questioning the sustainability and fairness of this approach.
This in-depth exploration dives into the heart of the issue, uncovering the complexities, costs, and consequences of Canada’s asylum housing strategy, while highlighting the urgent need for long-term solutions.
Table of Contents
The Surge in Asylum Claims and the Hotel Solution
Since 2017, Canada has seen a dramatic influx of asylum seekers, with claims soaring from 50,365 to an astonishing 173,000 in 2024.
The majority of these claimants have arrived in Ontario and Quebec, overwhelming local shelters in cities like Toronto and Montreal.
To address the crisis, the federal government began block-booking hotel rooms as a temporary measure to alleviate pressure on overcrowded municipal shelters.
What started as an emergency response has ballooned into a multi-billion-dollar program, with hotels across the country—from Vancouver to Atlantic Canada—housing thousands of asylum seekers.
Immigration, Refugees and Citizenship Canada (IRCC) reports that it currently funds accommodations and meals for approximately 500 asylum seekers across five hotels in Quebec and Ontario.
The average cost per claimant has dropped to $132 per day from a high of $199 in January 2024, reflecting efforts to curb expenses.
However, at its peak in late 2023, IRCC was renting rooms in 46 hotels at an average nightly cost of $205, underscoring the scale of the operation.
A Temporary Fix Turned Long-Term Burden
The decision to use hotels as interim housing for asylum seekers began as a stopgap in 2017, when shelters could no longer accommodate the growing number of arrivals.
According to an internal briefing prepared in March 2025 for the then-immigration minister, the federal government maintains around 3,500 hotel beds for “contingency purposes.”
While the number of asylum seekers housed in hotels has decreased from 1,474 across seven hotels in March 2025, the costs remain staggering.
The IRCC has emphasized that housing and supporting asylum seekers is primarily a provincial and municipal responsibility.
However, as local systems buckled under the strain, the federal government stepped in to prevent a humanitarian crisis.
“IRCC-funded hotels were always intended as a temporary measure to support local shelter systems,” said Isabelle Dubois, an IRCC spokesperson.
“Hotels are not a sustainable or cost-effective solution, and we are working to transition claimants to independent living as quickly as possible.”
The Financial Toll and Public Backlash
The $1.1-billion spent on hotel accommodations is just one piece of the financial puzzle.
Since 2019, the Interim Housing Assistance Program (IHAP) has disbursed $1.5-billion to provinces and cities to help cover the costs of supporting asylum seekers.
In the 2024 budget, an additional $1.1-billion was committed over three years to extend IHAP, with a focus on securing more affordable housing options.
Major cities and regions have received significant funding.
Toronto, which faced a crisis in 2023 with asylum seekers sleeping on the streets, has received $669.7-million since 2017.
Quebec has been allocated $542.7-million, while Peel Region, encompassing Brampton and Mississauga, has received $97.8-million.
The nation’s capital incurred $54.7-million in expenses for asylum claimants in 2024, with $51.9-million covered by IHAP funding.
Despite these investments, critics argue that the reliance on hotels is unsustainable and poorly managed.
NDP immigration critic Jenny Kwan has called the approach illogical, urging the government to find more affordable and sustainable housing solutions. “Renting hotel rooms for asylum seekers at these costs doesn’t make sense,” Kwan said.
“We need a system that supports newcomers without straining public resources.”
Conservative immigration critic Michelle Rempel Garner echoed these sentiments, highlighting the public’s growing frustration.
“In the middle of a housing crisis, spending billions on hotel rooms for asylum seekers creates a sense of unfairness among Canadians,” she said.
“These expenditures risk undermining public support for immigration at a time when unity is crucial.”
The Housing Crisis Connection
The Canadian housing shortage has amplified concerns about the hotel program.
With skyrocketing rents, limited affordable housing, and long waitlists for social housing, many Canadians feel that resources are being diverted from addressing domestic needs.
The sight of asylum seekers housed in hotels, often in desirable urban locations, has sparked accusations of preferential treatment.
“When Canadians are struggling to find a place to live, seeing hotel rooms booked for newcomers feels like a slap in the face,” said a Toronto resident who asked to remain anonymous.
The government has acknowledged these tensions and has taken steps to reduce reliance on hotels.
In 2024, IRCC issued “notices to vacate” to encourage asylum seekers to find community-based housing, resulting in 13,000 claimants leaving hotels between January 2024 and March 2025.
Additionally, efforts are underway to relocate asylum seekers to less burdened provinces, with financial incentives provided through IHAP.
The Path Forward: Balancing Compassion and Sustainability
The $1.1-billion hotel bill and the broader asylum housing crisis highlight the delicate balance between Canada’s humanitarian commitments and its domestic challenges.
While the country has a long history of welcoming refugees, the current system is buckling under the weight of unprecedented demand.
Experts argue that a multi-faceted approach is needed, including:
Investment in Affordable Housing: Expanding social housing and transitional programs could reduce reliance on costly hotel accommodations.
Streamlined Immigration Processes: Faster processing of asylum claims could help claimants transition to permanent housing and employment sooner.
Regional Collaboration: Distributing asylum seekers more evenly across Canada, with federal support, could alleviate pressure on urban centers.
Public Engagement: Transparent communication about the costs and benefits of asylum programs could help rebuild public trust.
As Isabelle Dubois of IRCC noted, “Asylum seekers are provided with resources to find housing, employment, and education during their stay. The goal is to support their transition to independent living as quickly as possible.”
However, with hotel contracts secured until September 2025 and no immediate end to the housing crisis, the path forward remains uncertain.
The Canadian $1.1-billion hotel bill for asylum seekers is more than a financial figure; it’s a symbol of a system under strain.
As the nation navigates rising asylum claims, a housing shortage, and growing public frustration, the need for sustainable solutions has never been more urgent.
By investing in affordable housing, streamlining immigration processes, and fostering regional cooperation, Canada can uphold its humanitarian values while addressing the needs of its citizens.
The question remains: will the government rise to the challenge, or will the hotel crisis continue to fuel division?
Stay updated with INC News.
Something went wrong. Please refresh the page and/or try again.
You may also like: 6 New CRA Benefits Payments Coming In January 2026
Top 5 Canada Permanent Residency Pathways In 2026
New CPP Payment Increase Effective January 2026
10 New Canada Immigration Laws and Changes Coming in 2026