Housing starts stayed strong in May, even as they fell more than analysts had expected, Canada Mortgage and Housing Corp. said today.

The seasonally adjusted annual rate of housing starts was down 5% to 218,800, from 230,400 in April.

Economists had expected starts to come in at 225,000.

CMHC says the seasonally adjusted annual rate of urban starts fell by 5.8%, due to a decrease in multiple starts. Single starts edged up by 0.2%.

“Housing starts remained strong in May and are in line with our expectations for the year,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre, in a release.

“Employment growth, particularly in full-time jobs, in recent years, and very low mortgage rates continue to fuel high levels of housing starts. Mortgage rates, which have edged lower in recent weeks, should continue to support residential construction over the coming months.”