The Canadian Mortgage and Housing Corporation (CMHC) reported a 10% increase in the seasonally adjusted annual rate (SAAR) of housing starts in May, reaching 264,506 units, up from 241,111 in April. The six-month trend in housing starts also rose by 3.8%, reaching 247,830 units from 238,859 in April.

Compared to April, Montreal saw a significant surge, with housing starts more than doubling, increasing by 104%. Toronto also experienced a 47% rise, primarily driven by multi-unit starts. However, these gains were offset by a 32% decline in Vancouver’s housing starts.

Urban housing starts across Canada rose by 11% to 246,111 units, with multi-unit urban starts up 13% to 203,141 units and single-detached urban starts up 2% to 42,970 units. The rate of rural starts was estimated at 18,395 units.

This uptick comes amid federal efforts to address housing affordability through new tax incentives and spending measures. The increase in housing starts also coincided with the Bank of Canada’s recent decision to lower interest rates by 25 basis points, the first reduction in four years.