Federal Labor's pledge to commit $100 million to urgent housing and essential infrastructure in the Northern Territory could alleviate pressure on the health system, according to the region's peak Aboriginal health body.

Federal Labor has promised a new $100m deal with the NT Government to support housing in remote and rural Indigenous communities should they win the May 21 election.

Aboriginal Medical Services Alliance Northern Territory executive officer John Patterson said healthcare in NT was intrinsically linked to investments in the housing sector, especially given the COVID-19 pandemic.

"Because there hasn't been ongoing repair and maintenance over the years, infrastructure is probably in disrepair now," he said.

"We've got housing stocks that are in need of urgent repair and maintenance.

"It's a dire state our housing situation is in remote communities and regional centres."

Mr Patterson said these housing conditions put pressure on the health system.

"One of the key messages is to self-isolate, how can we get our people to self-isolate when they're already residing in overcrowded housing conditions," he said.

"I can't emphasise how serious health and well being of our mental health and stress that has gone to our communities and families.

"This would not be tolerated in suburbia, capital cities like Melbourne, Sydney, Adelaide, Brisbane, and I think we're going to see a huge increase of more Aboriginal people suffering from mental illness."

Mr Patterson said the Federal election needed to spark change within the housing system.

"We would call on the incoming federal government to seriously consider engaging with Aboriginal leadership through the closing the gap process," he said.

"That's got to be a priority for the incoming government and that's what AMSANT will definitely be calling for."

Federal Lingiari MP Warren Snowdon said the housing crisis was the "most pressing" issue impacting health and chronic disease.

"I'm pleased that the announcement was made by Linda Burney on behalf of the Labor Party in Darwin around spending $100m on outstation permanent housing and the commitment to renegotiate the housing agreements in the Northern Territory government," he said.

"The impact of poor housing and health issues related to poor housing are very obvious in levels of chronic disease in remote community."

Labor candidate for Lingiari Marion Scrymgour said spending on health would improve access to safe and adequate housing in remote Australia.