Housing starts in Canada decline in July

Countrywide housing starts decreased in July, Canada Mortgage and Housing Corporation revealed Tuesday.

The seasonally adjusted rate was 132,100 for the month,according to data from the Crown corporation. That's down from June's 137,800 figure.

Urban starts decreased 5.5 per cent to 113,500 units in July, while rural starts were estimated at 18,600 units, down from 20,600 the previous month.

Most of that decline came frommultiple starts, which decreased nine percent to 61,000 units. Multiple starts arebuildings expected to house numerous dwellings, such as condominiums. Single starts were down 1.1 per cent.

Demand expected to rise

The agency estimates demographic demand for housing should be roughly 175,000 units per year, and it expects the number of starts to become more closely aligned to that in the next several years.

"Although July registered a decline, housing starts are expected to improve throughout 2009," CMHC chief economist Bob Dugan said.

Regionally, urban starts increased 16.6percent in Quebec, but declined:

• 17percent in the Prairies.
• 15percent in Ontario.
• 10percent in British Columbia.
• 1.4percent in Atlantic Canada.