"Despite the decrease in June, total housing starts remain at high levels," said CMHC economist Bob Dugan. "This is mostly due to the multiple (unit) segment, which has been continuously above the 100,000 unit threshold since the beginning of the year."

Multiple-unit starts declined 3 percent to 114,700 units and single-unit starts dropped 7.8 percent to 74,600 units, the report said.

By region, only the province of Ontario recorded a gain in housing starts -- 10.8 percent overall to 77,900 -- in June. Multiple-unit starts in Ontario jumped 30 percent.

"Year-to-date actual starts in urban areas have increased by an estimated 6.1 percent over the same period in 2007," the report said.