The seasonally adjusted annual rate of housing starts was 177,300 units in December, down marginally from 178,000 units in November, Canada Mortgage and Housing Corp. (CMHC) said Friday.

“Housing starts in December were almost unchanged compared to November,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “At an estimated 212,366 units, housing starts in 2008 breached the 200,000 unit mark for a seventh consecutive year.”

Pent-up housing demand, which built up over the 1990s, enabled Canadian housing starts to exceed long run demographic demand for the majority of this decade, CMHC said. This excess demand has gradually decreased and CMHC expects construction levels in 2009 to be more aligned with long run demographic demand.

The seasonally adjusted annual rate of urban starts decreased 0.5% to 150,100 units in December. Urban multiple starts increased 3.2% to 87,400 units, while urban single starts eased 5.1% to 62,700 units in December.

December’s seasonally adjusted annual rate of urban starts moderated in three of the five regions in Canada. Urban starts declined 12.6% to 36,700 units in Quebec, 6.3% to 25,100 units in the Prairies, and 3.6% to 8,100 units in the Atlantic Region. British Columbia urban starts rose 9.9% to 19,900 units and Ontario urban starts climbed 8.6% to 60,300 units.

Rural starts were estimated at a seasonally adjusted annual rate of 27,200 units in December.

For the year 2008, actual starts in rural and urban areas combined moderated by an estimated 7%, compared to the same period last year. Year-to-date actual starts in urban areas have decreased by an estimated 3.3% compared to 2007. Actual urban single starts for 2008 were 18.1% lower than they were a year earlier while urban multiple starts were up by 9.8% over the same period.