HST rebate boosted new GTA home sales but not condo: Report
· Toronto Sun
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An HST rebate helped sales of new homes in the Greater Toronto Area last month, according to a new report, however the condominium market continues to struggle.
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The report published Monday by the Building Industry and Land Development Association (BILD) noted 1,023 new homes were sold in May — more than triple the record low of 310 new homes around the same time last year.
Low-rise homes — properties that have one to four floors — account for the 830 new builds that sold, while condo sales continue to struggle, with only 193 new units sold in May.
Slight decrease in sales
The BILD report stated sales of single-family dwellings were well above the 10-year average for a second straight month, but slightly declined from April, when 1,100 new homes were sold. Still, new homes sales struggled, coming in about 57% below the 10-year average in May, thanks to a slow condo market.
“While new single-family home sales surpassed the 10-year average for a second straight month, they did slightly decrease from the sales levels we saw in April 2026 – the first month that the HST rebate program was introduced,” said Justin Sherwood, BILD’s chief operating officer, in a media release.
Sherwood said the decrease was due to potential new homeowners still waiting for clarity on how the HST rebate will be administered.
“For the high-rise sector, condominiums continue to struggle with higher existing inventory, a price floor and very low new product launches (only one new condo project has launched in 2026),” he said.
BILD data notes that the benchmark price for new condominium apartments in May was $1,029,489, while the price of single-family homes was $1,427,543, representing a 5.2% decrease from the same month last year.
Expanding for a year
In March, the federal and Ontario governments announced they would expand the HST rebate for new homes in the province temporarily for a year. This gives buyers a rebate of up to $130,000.
Sherwood noted eligibility for the rebate includes a “defined start and completion dates for new housing projects that are too tight for most new high-rise condominium projects to meet.”
He said that could be the reason behind slowing condo sales, as even low-rise homes appear to get a boost from the expanded rebate program.
“Providing clarity on these details will ensure that the momentum experienced since April continues,” Sherwood said.