Multi-residential real estate development projects spurred an increase in Montreal housing starts in August, according to Canada Mortgage and Housing Corporation.

Montreal multi-residential housing starts jumped 48% quarter-over-quarter in August, while the city’s overall housing construction projects rose 41%, CMHC said in a news release accompanying its latest quarterly report. Those increases contrasted with a 6% year-over-year decline in the city’s total housing starts.

Montreal is performing much better than the rest of Canada when it comes to housing construction projects, said the federal housing agency. Nationally, housing starts dipped 1% between July and August and were down 4% year-over-year.

Multi-residential projects have also helped Montreal outperform Canada’s two other largest cities. Toronto housing starts dropped 20% year-over-year in August, while Vancouver saw a 12% decline from a year earlier.

CMHC chief economist Bob Dugan said multi-unit start have helped offset significant declines in single-detached home starts in all provinces. But the multi-residential projects that started during busy summer months were financed before interest rates rose.

“So the full effect of higher interest rates on construction activity remains to be seen,” said Dugan in the news release.