Despite over 50 years of advocacy and policymaking toward deinstitutionalization, residential institutions for people labelled with intellectual and developmental disabilities (IDD) remain operational in six Canadian provinces. In addition, the lack of public, community-based housing has led to contemporary housing models that represent the re- or trans-institutionalization of labelled people. This article asks: why does the institutionalization of people labelled with IDD still occur in Canada? We argue that institutionalization is propelled by a policy legacy of systemic ableism that is manifested in three pervasive logics, which “haunt” the public provision of IDD housing: exclusion, elimination, and extraction. Empirical support is drawn from textual analysis and interviews with policymakers, advocates and people labelled with IDD in two Canadian provinces (Ontario and Nova Scotia). We conclude by discussing the interrelation of institutionalization and systemic ableism and presenting implications for counteracting ableism in Canadian IDD housing policy.