Canadian residential building activity accelerated in May to the fastest in 10 months, driven by condominium construction.
Builders began work on an annualized 201,705 homes last month, up 10 percent from April and the most since July, the Canada Mortgage & Housing Corp. said in a statement. Annualized multiple-unit construction in urban centers rose 17 percent.
The jump suggests the country’s housing market continues to benefit from the Bank of Canada’s rate cut in January, which is helping to boost builder confidence. It also suggests eastern provinces such as Ontario are driving growth, while construction in western provinces wanes.
Housing starts in Ontario were up 32 percent to an an annualized 81,535 units, with most of the gains in multiple-units such as condominiums. Starts in Prairie provinces were down 3.3 percent.
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