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Canada's May housing starts are expected to remain at a historically strong pace in a report due Tuesday at 815am EST, reflecting supply that's lagged demand for bigger houses to wait out the pandemic and record low interest rates.
The seasonally adjusted annualized pace of new homebuilding will be 270K units according to an economist consensus, after April's decline to 268.6K, according to an economist consensus.
The may pace would compare favorably with a pre-pandemic rate of around 200k, and more realistic than the March jump to a record of about 335,000 units. Economists predict homebuilding will remain elevated in coming months, as regulators mostly suggest the gains are fundamental rather than driven by more dangerous speculation that requires a crackdown.