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🏡💵 Indigenous Housing Inequality in Canada Will Drive Up Costs and Health Risks Without Policy Changes: Report

Wednesday, 10 December 2025 04:40.PM

Governments can save money--and lives--by ensuring Indigenous housing is energy efficient, resilient to a changing climate, and supports well-being.

Unhealthy, substandard housing and high energy costs are among the most urgent challenges facing Indigenous people in Canada, yet current measures to close the housing gap fall short due to siloed, complex policies that favour short-term solutions over long-term resilience. New research from the Canadian Climate Institute and Indigenous Clean Energy recommends governments adopt a new approach to prioritize the development of Indigenous housing that's energy efficient, resilient to climate-related threats, and supports overall well-being.

The report finds that closing the housing gap in First Nations, Inuit, and Métis communities requires smart, co-ordinated policy developed in partnership with Indigenous people. It proposes an innovative "Healthy Energy Homes" policy lens that can be applied to both new builds and deep retrofits in Indigenous communities. The Healthy Energy Homes approach offers actionable policy recommendations to address housing gaps, reduce energy bills and improve health and wellness, while uplifting Indigenous self-determination and advancing reconciliation.

Currently, Indigenous people are almost three times more likely to live in housing that needs major repairs compared to non-Indigenous Canadians. The impacts of climate change such as extreme heat, wildfire smoke, erosion and flooding, exacerbating the divide and exposing Indigenous people to further health risks.

To address these underlying challenges in the context of climate change, the new report recommends federal, provincial and territorial governments act together and swiftly to deploy Healthy Energy Homes by: co-ordinating and integrating government action, co-developing policies and programs led by and for Indigenous leadership, committing to long-term investment agreements and flexible funding options, measuring the co-benefits of improved housing including well-being, and ensuring funding programs are accessible and responsive to the capacity needs of communities.

Together, these solutions point to a clear path forward. With the creation of the $13-billion Build Canada Homes agency, governments have a chance to meaningfully improve Indigenous housing, wellness, and climate resilience. While success also requires long-term, flexible funding, estimates suggest every dollar invested in Indigenous housing can provide a social return on investment of around $6.79, including an estimated $3.12 in government savings.

"A home is more than a shelter; it's a gathering place that's central to a family's physical, emotional, spiritual, and cultural well-being. Many First Nations, Inuit, and Métis communities are already creating innovative building projects that are climate resilient, energy efficient and support people's well-being. What's needed is for all levels of government to remove barriers and co-develop housing policy led by and for Indigenous people."
-- Maria Shallard, Director of the Indigenous Research, Canadian Climate Institute

SOURCE: Canadian Climate Institute

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