New home sales in Ontario experienced a significant rise during the second quarter of this year, driven by the removal of the harmonized sales tax, according to fresh data from two industry associations.
Sales for new homes increased by 130 percent year-over-year in the second quarter due to a temporary extension of a provincial-federal HST rebate program for eligible home buyers, as reported by the Building Industry and Land Development Association (BILD) and Ontario Home Builders’ Association (OHBA) on Tuesday.
According to data, 8,410 new homes were sold in Ontario during the second quarter.
An economic analysis revealed that 4,765 of these new home sales can be linked to the expanded HST rebate program, stated the industry groups in a news release on Tuesday. They noted that this number represents a substantial increase compared to the same period in 2025 when only 3,645 new homes were sold in Ontario.
“The impact of the HST is what really brought consumers off the sideline,” Scott Andison, chief executive officer of the OHBA, mentioned on Tuesday. “It just makes a significant difference in families being able to purchase the home that meets their needs.”
This past March, the Ontario government announced it would eliminate the full 13 percent HST for qualifying buyers of new homes priced up to $1 million, offering a maximum rebate of $130,000 with support from federal funds. The rebate gradually decreases for pricier homes.
The expanded program began on April 1, became fully effective by late June, and will continue until March 31, 2027.
Andison emphasized that this change has greatly improved affordability for families while also helping create jobs within Ontario’s housing construction and renovation sectors.
“It meant the difference between a family qualifying for a mortgage and not,” Andison added.
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Broker Cautions Against Overly Positive Outlook
However, some industry members are questioning this optimistic portrayal from these organizations. David Fleming, a broker based in Toronto, expressed doubts about these figures since home sales have been struggling recently. He noted that while sales may have more than doubled in the second quarter compared to last year’s low point, they remain significantly lower than peak levels seen in spring 2022. “I have not had a single person contact me and use the word HST,” Fleming stated. “We have to take it with a grain of salt because BILD is going to say that sales are happening but we’re still double from an all-time low. You can make numbers say anything you want.” Nevertheless, Fleming acknowledged that homes are indeed more affordable now than they’ve been in quite some time.Government Aims for Affordable Home Ownership
Sarah Chapin, spokesperson for Ontario Finance Minister Peter Bethlenfalvy, shared Tuesday that their government is dedicated to making home ownership more achievable. “We know that it costs too much and takes too long to build new homes in Ontario. That is why our government introduced a series of measures to reduce the time and cost of building,” Chapin explained. “Our government will continue to work with our municipal and federal partners to create conditions for getting more shovels into action so we can build more homes faster and help make homeownership dreams come true for more people.”Source link
