The seasonally adjusted annual rate of housing starts decreased to 132,100 units in July from 137,800 units in June, Canada Mortgage and Housing Corp. said Tuesday.

“The slight decline in July’s housing starts is mostly attributable to the volatile multiple starts segment,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “Although July registered a decline, housing starts are expected to improve throughout 2009.”

Over the next several years, housing starts will gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year, CMHC said.

The seasonally adjusted annual rate of urban starts decreased 5.5% to 113,500 units in July. Urban multiple starts decreased 9% to 61,000 units, while urban single starts moved down 1.1% to 52,500 units in July.

July’s seasonally adjusted annual rate of urban starts increased 16.6% in Quebec. Urban starts declined 17% in the Prairies, 15% in Ontario, 10% in British Columbia, and 1.4% in Atlantic Canada.

Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units in July.

IE