Housing starts in Canada edged higher in adjusted, expected, increase, multiple, between

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Housing starts in Canada edged higher in May


OTTAWA — Home construction in Canada rose slightly more than expected in May, led in most provinces by the multiple-unit sector.


Canada Mortgage and Housing Corp. said Wednesday the seasonally adjusted annual rate of construction was 183,600 units during the month, up from 178,700 units in April.


Economists had expected between 182,000 and 183,000 units in May.


"Housing starts increased modestly in May due to an increase in multiple construction in most provinces and in rural starts," said CMHC chief economist Bob Dugan. "The increase in multiples and rural starts was partly off-set by a decrease in single starts."


Urban starts rose 0.8 per cent to 161,000 units in May, with multiple-unit construction up four per cent to 100,000 units, while single starts fell 4.1 per cent to 61,000 units.


In British Columbia, urban construction was 33.3 per cent, while Quebec recorded a 13.5 per cent rise. The Atlantic region saw an 11 per cent increase and the Prairies were up 10 per cent.


Urban starts in Ontario dropped 22.9 per cent.


Meanwhile, rural starts totalled 22,600 units in May, up from 18,900 the previous month.


"We may see some softness ahead for housing," said CIBC World Markets economist Krishen Rangasamy. "We expect housing starts to continue to soften as home prices stagnate in light of higher interest rates in the second half of the year."


Rangasamy said "this isn't a great report, considering that starts were in the 200-250K range before the recession."

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Home construction in Canada rose slightly more than expected in May, led in most provinces by the multiple-unit sector