09:26 AM EDT, 05/15/2025 (MT Newswires) -- Canadian housing starts came in at 278,600 annualized units in April, marking a 30% month-on-month jump from March's relatively low level, said TD after Thursday's data from Canada Mortgage and Housing Corporation (CMHC).

This marked the highest print since June 2023, noted the bank. Meanwhile, the six-month moving average of starts increased 2.4% month over month to 240,900 units.

April's increase was concentrated in the multi-family sector, with urban starts surging 34% month over month to 214,500 units. Meanwhile, urban single-detached starts increased by 6% month over month to 45,300 units.

Urban starts were up in six of 10 provinces:

-- Starts rose strongly in Ontario (+25,800 to 64,100 units), British Columbia (+22,000 to 51,100 units). They also surged in the Atlantic Region (+5,900 to 18,500 units) -- boosted by Nova Scotia and Prince Edward Island. The increase in the Prairies (+7,200 to 74,900 units) was driven solely by Alberta.

-- Starts dropped in Quebec (-3,700 to 51,200 units), New Brunswick (-2,400 to 2,400 units), Manitoba (-2,600 to 5,500 units) and Saskatchewan (-400 to 7,400 units).

A bounce-back in homebuilding was expected last month after steep declines over the February/March period, stated TD. Still, April's surge surpassed expectations and should offer some near-term lift to residential investment spending and overall gross domestic product.

That said, the trend in housing starts is softening, with the six-month moving average down 5% from its mid-2024 peak. This moderation is consistent with the bank's forecast for this year, as construction responds to the past declines in demand, slower population growth, and elevated construction costs.

Ontario, being the driver of the moderation in construction, is concerning for future affordability, as housing shortages in the province are among the most pronounced of any region, pointed out TD.