New data from industry groups revealed a significant increase in new home sales in Ontario during the second quarter of this year, attributed to the elimination of the harmonized sales tax. The Building Industry and Land Development Association (BILD) and Ontario Home Builders’ Association (OHBA) reported a 130% year-over-year surge in new home sales, totaling 8,410 units sold in Ontario.
A detailed economic analysis conducted by the industry groups indicated that 4,765 of the new home sales were directly influenced by the temporary expansion of the provincial-federal HST rebate program for eligible homebuyers. This figure marks a substantial rise from the same period in 2025 when 3,645 new homes were sold in the region.
OHBA’s CEO, Scott Andison, emphasized the positive impact of the HST rebate program, stating that it played a crucial role in motivating consumers to enter the housing market. The Ontario government’s decision to eliminate the full 13% HST for eligible buyers of new homes valued up to $1 million, with a maximum rebate of $130,000, was a key driver of this surge in sales. The expanded rebate program, which commenced on April 1 and will run until March 31, 2027, has been instrumental in enhancing affordability for families and supporting employment in the home building sector.
Despite the optimistic outlook presented by the industry groups, some industry insiders remain cautious. David Fleming, a Toronto-based broker, expressed skepticism about the reported sales figures, noting that while home sales have indeed doubled in the second quarter, they are still below pre-pandemic levels. Fleming highlighted the importance of considering the context of the market dynamics, cautioning against overly optimistic interpretations of the data.
In response to the surge in new home sales, Sarah Chapin, spokesperson for Ontario Finance Minister Peter Bethlenfalvy, underscored the government’s commitment to improving housing affordability in the province. Chapin emphasized the government’s efforts to streamline the home building process and collaborate with municipal and federal partners to accelerate housing construction, aiming to make homeownership more attainable for a broader segment of the population.