The seasonally adjusted annual rate of housing starts dropped to 117,400 units in April from 146,500 units in March, Canada Mortgage and Housing Corp. (CMHC) said Friday.

“The decrease in April’s housing starts is partly attributable to the volatile multiple starts segment,” says Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “Most of the decline has occurred in the condominium segment in Ontario.”

While some improvement is expected, new home construction is unlikely to match the pace set over the past seven years, which exceeded 200,000 units per year. Housing starts will be more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year, CMHC says.

The seasonally adjusted annual rate of urban starts decreased 24% to 96,800 units in April. Urban multiple starts decreased 32.7% to 54,700 units, while urban single starts moved down 8.7% to 42,100 units in April.

April’s seasonally adjusted annual rate of urban starts increased 1% in British Columbia. Urban starts declined 43.7% in Ontario, 16% in Atlantic Canada, 7.1% in Quebec, and 3% in the Prairies.

Rural starts were estimated at a seasonally adjusted annual rate of 20,600 units in April.

IE