The seasonally adjusted annual rate of housing starts was 278,200 units in September, up 19.6% from 232,700 units in August, according to Canada Mortgage and Housing Corp. (CMHC).

“The rise in September housing starts reflects a strong multiple starts segment,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre.

“In particular, the robust results achieved this month can be mostly attributed to increased condominium starts, which reflect strong condo sales over the past 12 to 24 months. Despite this sizeable growth in September, we continue to expect that housing starts will decrease gradually between now and the end of 2008,” Dugan said.

The seasonally adjusted annual rate of urban starts increased 22.9% to 244,400 in September, compared to August. Urban singles were down 4.3% to 90,300 units in September, while multiple starts increased 47.5% to 154,100 units.

In September, the seasonally adjusted annual rate of urban starts increased in all five regions. Urban starts registered an increase of 3% in the Atlantic region, 46% in Quebec, 23.6% in Ontario, 11.1% in the Prairies, and 15.8% in British Columbia. Urban single starts were down in all regions except Quebec, where single starts were unchanged at 16,400 units. All regions saw double-digit increases in urban multiple starts with Quebec leading the way with a 75.2% increase.

Rural starts were estimated at a seasonally adjusted annual rate of 33,800 units in September.

Actual starts, in rural and urban areas combined, were up an estimated 0.2% in the first nine months of 2007 compared to the same period in 2006. In urban areas, actual total starts grew by an estimated 1.2% year-to-date. Single starts growth was -4.7% while multiple starts grew by approximately 7%.