An Aboriginal-led housing project in northern WA is close to signing off on a project to boost affordable housing stocks in a town with high unemployment among its majority-Indigenous population.

The Leedal Enterprises-led Fitzroy Crossing Aboriginal Housing Program will see 42 affordable homes built in town, help 21 Aboriginal families into home ownership and provide training for eight people.

While the project has reached an advanced stage of planning, increasing costs which are hampering development across the nation have become a challenge.

Leedal executive chairman Patrick Green said final contracts were being negotiated with government, after which the project would tender for a builder.

"There hasnt been private housing in the past, so there will be affordable housnig for Aboriginal people on one hand and there will be an increase in trying to fulfill shortage of housing to attract staff," he said.

"I am looking forward to a project like this to go ahead and preferably we can do a bit more in Fitzroy with other developments."=

"I would like to think the government has commitment to Fitzroy in regards to (private) housing."

The project has been built in partnership with WA's Department of Communities.

• NIT executive chairman Wayne Bergmann is Leedal's managing director. Mr Bergmann has not seen the final story before publication.