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Becoming a homeowner in Nunavik, a challenge in the face of inflation

Among several initiatives, theOMHK has set up a subsidy program for the construction of new houses. Financial assistance can go up to 75% of the construction cost, with a maximum of nearly $500,000.

000$ for example, the owner must take out a mortgage of 200000$ and then it becomes reasonable for them”,”text”:”For a total construction of $700,000 for example, the owner must take out a mortgage of $200,000 and then it becomes reasonable for them””>For a total construction of $700,000, for example, the [futur] owner must take out a mortgage of $200,000 and then it becomes reasonable for himexplains the head of the aid program, Roxanne Villeneuve.

Roxanne Villeneuve also accompanies new owners with their new responsibilities and the maintenance of a house.

Photo : Radio-Canada / Felix Lebel

Without this assistance, it would be difficult for the Nunavik Inuit to become homeowners, given the exorbitant construction costs in the region, which can be up to three times higher than those in southern Quebec, according to theOMHK.

I never would have been able to afford this house without helpexplains retiree Minnie Grey, who was able to take advantage of this program in 2020. When I retired, I lost the housing that was provided by my employer. So I had to find a solution. But the Nunavik real estate market does not exist.

Portrait of Minnie Grey, with a red sweater, in her new kitchen.

Minnie Gray had a two-bedroom house built, big enough for her and her husband, who are both retired.

Photo : Radio-Canada / Felix Lebel

For Minnie Grey, the happiness of feeling at home has no equal, she adds in her kitchen where she can receive her friends. She also considers herself lucky, because since the COVID-19 pandemic, the price of construction has exploded in the region.

000$ in 2018, in 2020, it went up to 1million$. In 2021, it went to 1.2 and here we are at 1.4million. It literally doubled, almost overnight”,”text”:”A three-bedroom single-family home, let’s say it cost us $700,000 in 2018, in 2020, it went up to $1million. In 2021, it went to 1.2 and there we are at 1.4 million. It totally doubled, almost overnight””>A three-bedroom single-family home, let’s say it cost us $700,000 in 2018, in 2020 it went up to $1 million. In 2021, it went to 1.2 and there we are at 1.4 million. It totally doubled, almost overnightexplains Roxanne Villeneuve of theOMHK.

Faced with the increase in these prices, at least five future owners have had to put their project on hold, because the organization cannot increase the amounts of the subsidies.

Minnie Gray points to the kitchen of her house.

Minnie Gray was able to move into her home in 2020, just before building material prices exploded.

Photo : Radio-Canada / Felix Lebel

000$, he hasn’t managed to save hundreds of thousands of dollars in a year or two, it’s impossible”,”text”:”For a homeowner who planned a $700,000 house, he didn’t hasn’t been able to save hundreds of thousands of dollars in a year or two, it’s impossible””>For a [futur] homeowner who planned a $700,000 home, he couldn’t put hundreds of thousands of dollars aside in a year or two, that’s impossibleadds Roxanne Villeneuve.

A construction contractor from Kuujjuaq, Patrick York, was also struck by the rise in the price of materials, which are exacerbated by the logistical challenge of getting them to Nunavik.% since last year”,”text”:”If we can’t meet the deadlines for shipping by ship, we have to bring in materials by plane. It has increased by more than 30% since last year”}}”>If we can’t meet the deadlines for shipping by ship, we have to bring in materials by air. It has increased by more than 30% since last yearexplains the entrepreneur.

Portrait of Patrick York, in a kitchen under construction, in February 2023 in Kuujjuaq.

Despite soaring prices, building contractor Patrick York continues to work, due to the lack of housing in the area.

Photo : Radio-Canada / Felix Lebel

000$ simply for the transport of a new floor. I can’t believe it”,”text”:”For example, I just had a problem with flooring glue on a project, and it’s going to cost over $22,000 just to ship new flooring. I can hardly believe it””>For example, I just had a problem with flooring glue on a project, and it’s going to cost over $22,000 just to ship new flooring. I can hardly believe ithe adds.

L’OMHK must soon renegotiate new budgets with Quebec for a second phase of the assistance program for the construction of houses. The organization hopes that the subsidies will be adjusted for inflation to allow more Nunavimmiut to have access to property, which would be a profitable solution for the State according to theOMHK.

Colorful houses in front of the river in January 2023.

The vast majority of houses in Nunavik are social housing managed and maintained by the KMHB. (Archives)

Photo : Radio-Canada / Felix Lebel

When a client becomes an owner, it is he who maintains his house, and not the government in the case of social housing. In the long term, these costs are so minimal compared to the renovation of a social house after 20 years. It’s incomparablesupports Roxanne Villeneuve.

The aid program also makes it possible, the organization recalls, to free up social housing and reduce overcrowding. The phenomenon affects 47% of Nunavik homes, and is the cause of many risk factors related to the health and well-being of residents.

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