Parliamentary budget officer Yves Giroux waits to appear before the Commons finance committee on Parliament Hill in Ottawa on March 10, 2020. THE CANADIAN PRESS/Adrian Wyld

Parliamentary budget officer Yves Giroux waits to appear before the Commons finance committee on Parliament Hill in Ottawa on March 10, 2020. THE CANADIAN PRESS/Adrian Wyld

Closing housing gap for urban Indigenous people could cost $1.4B a year: report

Nationally, about 124,000 Indigenous households are in core housing need

The federal government would have to spend about $1.4 billion more a year to close a housing gap facing urban Indigenous people, the parliamentary budget officer says in a report that hints at the scale of a promised federal strategy to address the issue.

The cost in the report would be at the upper end of a range that starts at $159 million annually, depending on what percentage of construction costs and rent subsidies the government wants to cover.

As is, the Liberals’ decade-long national housing strategy explicitly allocates $179 million per year to Indigenous housing in urban, rural and northern areas, the PBO calculated.

The Liberals bill the cost of the strategy at over $55 billion, which includes spending to help offset mortgage costs for first-time homebuyers, as a key avenue to help ease a housing crunch for hundreds of thousands of households.

Nationally, about 124,000 Indigenous households are in core housing need, the PBO report estimated, meaning they live in units that stretch them financially, need hefty repairs, or are not large enough for their families.

The budget office’s calculation estimated the annual gap between what those households pay and the housing costs deemed affordable by a federal housing agency to be $636 million.

The federal Liberals have promised to create an urban Indigenous housing strategy, with details expected in this year’s federal budget.

Already, Liberals have been out touting coming spending to meet a promise made during the 2019 federal election campaign and sprinkled into multiple ministerial mandate letters.

The Liberals have spoken about funding for urban Indigenous housing providers as the missing piece of the national housing strategy, having already provided funding for on-reserve housing.

More than half of Indigenous households living in inadequate homes reside in the country’s biggest cities, with Winnipeg housing the highest number based on the PBO’s estimates, followed closely by Vancouver.

The report from budget office provides an idea of how much spending the Liberals would have to add to the national housing strategy, depending on how much of the housing and affordability gap the government wants to close.

Budget officer Yves Giroux said the gap is unlikely to shrink, pointing to relatively hot housing markets across the country, despite the pandemic, and demographic factors: Indigenous populations have recently grown faster than non-Indigenous people.

“These two factors suggest that the numbers to plug the affordability gap are likely to go up rather than down,” he said.

That could change if Indigenous households gain a larger foothold in the labour market and see their incomes rise, Giroux said, “but it’s not what we are seeing in the last several years.”

Indigenous households are one-and-a-half times more likely to be in housing need than non-Indigenous households, Giroux noted, with an average annual gap of $5,000 between what they should and do pay for adequate housing.

The situation is even more acute in the North, with Inuit households almost two-and-a-half times more likely to live in inadequate or unaffordable housing.

Part of the gap has to do with the adequacy requirement that the Canada Mortgage and Housing Corporation uses to define “core housing need,” which looks at how many rooms are needed depending on family size.

Indigenous families tend to be larger than non-Indigenous households, and census data has shown that multiple Indigenous families can be living under one roof in overcrowded homes.

A parliamentary committee researching urban Indigenous housing issues commissioned Giroux’s report released Thursday.

The House of Commons committee is expected to soon release its report, which would lay the foundation for a federal program.

Jordan Press, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

federal governmentIndigenous

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A dose of COVID-19 vaccine is prepared at a vaccination clinic in Montreal’s Olympic Stadium on Tuesday, Feb. 23, 2021. THE CANADIAN PRESS/Paul Chiasson
39 new cases of COVID-19 in Interior Health region

The total number of cases in the region since the pandemic began is now at 7,334

The Site C Dam location is seen along the Peace River in Fort St. John, B.C., Tuesday, April 18, 2017. The cost of British Columbia’s Site C hydroelectric dam has grown to $16 billion and the completion has been moved up a year to 2025. THE CANADIAN PRESS/Jonathan Hayward
BC Liberal energy critic blasts ‘lack of transparency’ on Site C

MLA Tom Shypitka says Site C going ahead is a ‘good thing’, blames NDP for mismanagement

Kootenay-Columbia MP Rob Morrison speaks during Question Period in the House of Commons. File photo.
Kootenay-Columbia MP supports motion condemning Uighur genocide

Rob Morrison says labelling Uighur persecution as a genocide sends a message to Chinese government

The BC Prosecution Service announced last year that it was appointing lawyer Marilyn Sandford as a special prosecutor to review the case, following media inquiries about disclosure issues linked to a pathologist involved in the matter. (Black Press Media files)
Possible miscarriage of justice in Cranbrook woman’s conviction in toddler drowning: prosecutor

Tammy Bouvette was originally charged with second-degree murder but pleaded guilty in 2013 to the lesser charge

A rainbow shining on Kelowna General Hospital on May 12, 2020 International Nurses Day. (Steve Wensley - Prime Light Media)
New COVID cases trending down in Interior Health

24 new cases reported Thursday, Feb. 25, death at Kelowna General Hospital

A health worker holds a vial of AstraZeneca vaccine to be administered to members of the police at a COVID-19 vaccination center in Mainz, Germany, Thursday, Feb. 25, 2021. The federal state of Rhineland-Palatinate, start with the vaccination of police officers in internal police vaccination centers. (Andreas Arnold/dpa via AP)
B.C. officials to unveil new details of COVID vaccination plan Monday

Seniors and health-care workers who haven’t gotten their shot are next on the list

An investigation is underway after a man was shot and killed by Tofino RCMP in Opitsaht. (Black Press Media file photo)
Man shot and killed by RCMP near Tofino, police watchdog investigating

Investigation underway by Independent Investigations Office of British Columbia.

B.C. Supreme Court in Vancouver on Tuesday December 11, 2018. THE CANADIAN PRESS/Darryl Dyck
B.C.’s compromise on in-person worship at three churches called ‘absolutely unacceptable’

Would allow outdoor services of 25 or less by Langley, Abbotsford and Chilliwack churches

Baldy Mountain Resort was shut down on Saturday after a fatal workplace accident. (Baldy Mountain picture)
Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Jasmine and Gwen Donaldson are part of the CAT team working to reduce stigma for marginalized groups in Campbell River. Photo by Marc Kitteringham, Campbell River Mirror
Jasmine’s story: Stigma can be the hardest hurdle for those overcoming addiction

Recovering B.C. addict says welcome, connection and community key for rebuilding after drug habit

A Vancouver restaurant owner was found guilty of violating B.C.’s Human Rights Code by discriminating against customers on the basis of their race. (Pixabay)
Vancouver restaurant owner ordered to pay $4,000 to customers after racist remark

Referring to patrons as ‘you Arabs’ constitutes discrimination under B.C.’s Human Rights Code, ruling deems

Nanaimo children’s author and illustrator Lindsay Ford’s latest book is ‘Science Girl.’ (Photo courtesy Lindsay Ford)
B.C. children’s writer encourages girls to pursue the sciences in new book

Lindsay Ford is holding a virtual launch for latest book, ‘Science Girl’

Most Read