Canadian housing starts jumped 13.8% to a seven-month high of 200,200 annualized units in May from the upwardly revised 175,900 in April (previously reported as 174,900).
Figures released this morning by Canada Mortgage and Housing Corporation also suggest the monthly surge in homebuilding in May, which was much stronger than market expectations for a rise to 178,100, reflected increases among all components led by a sizable increase in the volatile urban multiple-unit (up 22.2% to 114,300).
The comparatively stable urban single-unit starts saw a more modest increase in the month (up 3.0% to 62,900) while rural starts (up 7.6% to 22,900) partially reversed previous month’s decline.
On a regional basis, strength was concentrated in outsized increases in Ontario and Atlantic Canada (up 46.4% and 111.8% overall, respectively, reflecting increases in urban multiple-unit construction of 80.7% and 429.1%, respectively).
Weakness was evident outside of these two regions as starts declined in British Columbia (-7.4%), Quebec (-5.6%) and edged down in the Prairies (-0.3%).
