Housing Starts Are Up

Canadian housing starts rose 9.2 percent in May, slightly better than expected, and was broadly based and encompassed both single and multiple segments, the Canada Mortgage and Housing Corp (CMHC) said on Monday. New home construction rose to a seasonally adjusted annual rate of 128,400 units in May from 117,600 units units in April, CMHC said.

The number of starts in May beat analysts' consensus expectations of 125,300 starts.

The seasonally adjusted annual rate of urban starts rose 11.1 percent to 107,800 units in May. Urban multiple starts rose to 60,900 units, while urban single starts climbed to 46,900 units in May.

The seasonally adjusted annual rate of urban starts in May rose 22 percent in Ontario, 16.8 percent in the Prairies, 7.3 percent in Atlantic Canada and 3.3 percent in Quebec.

Urban starts declined 5 percent in British Columbia.

CMHC said housing starts are expected to improve throughout 2009 and over the next several years to "become more closely aligned to demographic demand," which is currently estimated at about 175,000 units per year.