Multi-residential construction projects spurred an increase in Canadian housing starts in September, says the Canada Mortgage and Housing Corporation.

Multi-unit urban starts increased 10% on a quarterly basis to 207,689 units in September as overall commencements rose 8% to 270,466 from August.. Single-detached home construction starts in urban centres increased 3% to 43,077 units.

All figures are the seasonally adjusted annual rate.

“It seems the current higher interest rate environment has not yet had the expected negative impact on multi-unit construction activity so far in 2023,” said Bob Dugan, CMHC’s chief economist, in a news release.

Montreal starts soared 98% and Toronto starts jumped 20%. But Vancouver saw overall declines due to fewer multi-residential construction launches.

Vancouver recorded a 17% overall reduction and 18% decrease in multi-unit starts.

On a year-to-date basis, Vancouver overall starts were up 37% from the first nine months of 2022, while Toronto launches climbed 22%. But on a monthly basis, overall construction starts dropped 8% from September 2022.

CMHC’s September findings came after apartment projects drove first-half 2023 construction starts.