Assisted living could alleviate ‘bed block’

There is a severe shortage of public and non-profit rent-geared-to-income/services-geared-to-income assisted-living housing for older adults in Manitoba. Seniors assisted living is a form of housing that includes rent, food, laundry and cleaning services.

Presently, the provincial government almost exclusively relies on the private market to provide assisted-living housing for seniors. Monthly private-market assisted-living housing rent for seniors ranges from $3,000 to $6,000 per month. The total income for an individual older adult receiving old age security (OAS) and guaranteed income supplement (GIS) pensions is less than $2,000 per month.

It is clear that low- and fixed-income seniors are not able to afford private-market assisted-living housing, resulting in the premature entry of these older adults into long-term care homes because seniors assisted-living housing is not publicly subsidized, whereas long-term care facilities do provide income-based subsidies.

Low- and fixed-income seniors are also experiencing a food affordability crisis which is negatively impacting their health and well-being. An enhanced assisted-living housing program that includes congregate meals would play an important role in addressing this growing affordability problem, along with reducing social isolation and loneliness.

In 2025, British Columbia publicly funded 133 subsidized seniors assisted-living residences, encompassing 4,334 units. The minimum monthly rate was $1,219 for a single senior and $1,857 for a couple. The average monthly rate for publicly funded assisted living was $1,616. These monthly rates are particularly impressive, in the B.C. housing market.

More assisted-living housing for low- and fixed-income seniors is a strategic approach to address the growing challenge of “bed blocks” in hospitals and long-term care homes. It would free up beds being used by older adults who would have their needs better met in public or non-profit rent-geared-to-income/services-geared-to-income assisted-living housing.

Manitoba government data indicates that in 2025-26 there were 3,059 patients waiting in hospitals for long-term care, amounting to 150,801 days, resulting in a conservative annual cost estimate of $98 million.

Based on data provided by the Department of Health, Seniors and Long-Term Care, the average cost in the province for a senior waiting in hospitals for long-term care is $650/day. For long-term care it is $340/day. The estimated average cost for the provincial government to subsidize seniors assisted-living housing is $125/day.

A 2025 B.C. Senior’s Advocate report concluded that “it is time to recognize that creating more publicly subsidized senior’s living options are a practical and cost-effective option to help alleviate some of the demand for long-term care … meeting the growing demand for long-term care requires more than building additional beds. It requires strengthening community-based alternatives that delay or prevent the need for long-term care.”

In 2024, research by the Right to Housing Coalition of Manitoba identified that the provincial government needed to build 10,000 new rent-geared-to-income housing units over the next 10 years, including public, non-profit and co-operative housing, to meet the growing demand for social housing in our province.

Manitoba committed to build 350 units of affordable and social housing in its 2024 budget; 400 units in 2025; and only 215 units in 2026. The total is just 965 units of social and affordable rental housing. This means the province will be more than 2,035 units short of affordable and social housing requirements and even further short of the social housing we know is needed as affordable housing units are not based on rent-geared-to-income.

The 2026 budget allocates $12.8 million to create the additional 215 social and affordable housing units, along with $267.8 million for the operating budget of Manitoba Housing and Renewal Corporation. According to MHRC’s auditor’s report for the year ended March 31, 2025, total revenue for the province’s social housing provider was $392.4 million, including rental revenue and contributions from other levels of government.

Thus, the $98 million annually of “blocked money” caused by “bed blocks” is significant.

The federal government needs to ensure the Build Canada Homes Program includes funding to address the public and non-profit housing needs of low- and fixed-income seniors. This type of provincial-federal partnership is crucial to mobilize the capital required to build rent-geared-to-income seniors assisted-living housing.

There is a compelling cost-benefit analysis case for the provincial government to address this issue of “blocked money” tied up in the estimated annual $98 million “bed block” cost of patients waiting in hospitals for long-term care.

Greater system effectiveness, budget efficiency and appropriate care for seniors could be achieved (a public policy “hat trick”) if the provincial government expanded investment for rent-geared-to-income/services-geared-to-income public and non-profit seniors assisted living housing. The human and financial cost of doing nothing is significant.

Jesse Hajer is an economist at the University of Manitoba, and Tom Simms is a member of the board of directors of the Manitoba Seniors Equity Action Coalition.