Canada Mortgage and Housing Corp. is reporting its seasonally adjusted annual rate of housing starts was 189,300 units in June, down 3.1 per cent from May.
The agency also revised up its figures for April and May - to a 3.7-per-cent gain in April (205,900 units) and a 5.1-per-cent decline in May (195,300 units).
The agency says June's decline was largely due to a slide in Ontario multiple starts.
Urban starts fell 2.6 per cent to 167,000 units in June.
Urban multiples decreased 5.8 per cent to 89,200 units, while singles edged up 1.4 per cent to 77,800 units.
The annual rate of urban starts decreased 19.8 per cent in Atlantic Canada and 17.4 per cent in Ontario, and increased 11.6 per cent in Quebec, 8.6 per cent in the Prairie region and 6.3 per cent in British Columbia.
Rural starts were estimated at 22,300 units in June.
"Canadian residential construction activity has likely peaked for the time being, and should soften further given the weakening demand backdrop and lower rate of household formation," Robert Kavcic of BMO Nesbitt Burns said in a note.