I want to thank the committee for inviting me to speak here today and for the warm welcome.
The ongoing affordable housing shortage poses a substantial burden for indigenous people across our country. Nunavut is one of the hardest hit jurisdictions in Canada. My invitation to speak here today is a positive sign that the Standing Committee on Indigenous and Northern Affairs is taking this crisis seriously.
I'm the newly appointed president of the Nunavut Housing Corporation, although my career in northern housing and infrastructure began in 1994 when I got my first job in the community of Arviat with the Northwest Territories Housing Corporation. I spent 13 years with that organization and then later served as assistant deputy minister of infrastructure with the Nunavut government as well as deputy minister of infrastructure and housing with the Province of Nova Scotia.
In the 20 years since Nunavut was founded, the housing shortage has only grown. Overcrowding is becoming the norm. Although both the Government of Nunavut and our federal partners have invested and continue to invest in maintenance and construction, the situation is not getting better. It's getting worse.
Ask Nunavummiut what their biggest worry is for the future of our territory and most will answer housing. Against a backdrop of chronic underinvestments in affordable housing, not a single person is untouched by this crisis.
Within the government we constantly ask ourselves how we will address the increasing pressures on supportive housing options for vulnerable segments of the population. That includes our elders, women, young victims of family violence and people without homes.
About 70% of the housing available in Nunavut is public housing. There are few alternatives to government-subsidized housing. In many communities the markets for private rentals or home ownership simply do not exist. In a territory of almost 39,000, there are more than 3,000 families on our public housing wait-lists. We estimate that the real need for additional new housing is closer to 5,000 units.
The Nunavut Housing Corporation maintains approximately 5,800 public housing units. We build about 75 to 100 new units every year. This comes nowhere near meeting the demand. We need to start building 250 to 300 homes each year over the next five to eight years to make a reasonable dent in the current housing supply gap.
Around 35% of all homes are overcrowded in Nunavut. For Inuit households, that number rises to approximately 56%. We know that unsuitable housing is a significant risk factor for tuberculosis, which is another crisis we are fighting in Nunavut, and of course for COVID-19.
Overcrowding is also a driver of many of the social problems in the territory, such as family abuse and the suicide crisis. This stresses our health care, justice and social services institutions. It poses an obstacle to employment, education and training opportunities for our residents. Earlier this year, the Nunavut community of Pangnirtung held the rare distinction of fighting outbreaks of COVID-19 and tuberculosis at the same time. You can imagine how this limits efforts to prevent the spread of either disease.
In addition to overcrowding, the poor condition of existing homes across Nunavut continues to be a driver of negative social outcomes. The number of homes requiring major repairs doubled from 20% in 2006 to approximately 40% in 2018. This compares to the national average of approximately 7%.
Mould continues to be a significant issue across our portfolio of existing public housing units. The Nunavut Housing Corporation has completed remediation work on approximately 150 public housing units over the past five years. Hundreds more units need to be remediated. We anticipate spending approximately $30 million over the next five years to address the units in greatest need of remedial action. We will still have many more units requiring action, but limited funding impacts our schedule.
In Nunavut, as in the rest of the country, public housing remains the least costly way to address homelessness. The Nunavut Housing Corporation could put someone in a public housing unit for $16 a day. By contrast, it costs $74 a day to house somebody in an emergency shelter service. That's about five times the cost. A family violence shelter operating a 24-hour, full-service shelter can house someone at $135 a day. That's eight times the cost. Putting somebody in a jail cell in Nunavut is equivalent to $306 a day. It is almost 20 times the cost.
It's not only from a humanitarian perspective, but also a financial perspective that we can say that public housing represents a sound investment. The longer we take to reasonably address the housing crisis, the more it will ultimately cost to pay for it.
In 2019, the federal and territorial governments struck an agreement to provide nearly $316 million over 10 years to repair and build affordable homes across our territory. We estimate it will take approximately $3 billion to build the 5,000 housing units we need over the next five to eight years. That price tag is only going to get steeper with each passing year, as the cost of construction escalates. We all need to work together to close this staggering housing supply gap.
I appreciate the opportunity to speak to you. I'm happy to answer any questions.
Thank you. Qujannamiik.