New Home Construction Spiked In July: CMHC

New home construction rose nearly 16% in July compared with June, said Canada Mortgage and Housing Corporation (CMHC).

CMHC said the seasonally adjusted annual rate of housing starts rose to 245,604 in July, up from 212,095 in June. Canada's long-run average is for about 200,000 new homes to be built each year. The six-month average now sits at 204,376 as of July, up from 199,778 in June.

Economists had been expecting the rate to come in at around 210,000, according to data compiled by Bloomberg. Most of the surge came from a boom in multiple-unit construction for things such as condos and apartments, which rose 18.8% to 184,431. Single detached urban starts climbed 12.3% to 47,564 in July.

Construction increased in every province except Manitoba. Alberta's number rose for the first time in three months, but the province is still seeing construction activity well below the usual level. Activity in Saskatchewan rose, bringing home construction to the highest level in the province since October 2014. Ontario climbed 8% following a 36% increase the previous month.

Quebec held steady while activity increased in Atlantic Canada, especially New Brunswick where construction activity hit the highest level since 1990, according to CMHC.