Canada May Housing Starts Climbed More Than Expected

Canadian new-home starts rose a greater-than-expected 3.5% in May from the previous month, led by a gain in single-family dwellings.

The total of 221,300 units on an annualized basis compares with 213,900 units in April. Economists predicted an increase to 220,000.

Canada's housing market remains "healthy" because of low unemployment and rising wages, and because banks in the country offered fewer of the subprime mortgages that roiled the economy in the U.S.. Still, Canadian home starts will fall 6% this year due to higher mortgage interest costs.

Urban single-family home construction rose 7.3% to 76,700. The pace of multiple housing starts in cities rose 1.9% to 116,100 units in May.