(RTTNews) - Canadian housing starts rose slightly in October, as new construction on multiple-family buildings offset a small decline in single home starts, the national housing agency said Monday.

The seasonally adjusted annual rate of housing starts reached 157,300 units in October. This is an increase from 149,300 units started in September, according to Canada Mortgage and Housing Corporation (CMHC).

Economists expected housing starts to rise to 154,000 units.

“The improvement in housing starts in October is attributable to improvement in the multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Despite a small decline in single home starts in October, the level of single home starts remains at its second highest level since October 2008.”

Urban starts increased by 5.2 per cent to 139,900 units in October. Urban multiple starts climbed 13.8 per cent to 72,600 units, while urban single starts declined by 2.7 per cent to 67,300 units in October.

Last week, CMHC predicted that housing markets across Canada would strengthen leading into and over the course of 2010 as economic conditions improve.

“Demand for existing homes has rebounded since the beginning of the year. In addition, lower inventory levels characterize both the new and existing home markets. As a result, stronger housing demand will be reflected in higher levels of housing starts in 2010″, said Dugan.

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