New home sales across Ontario see positive uptick in Q2 thanks to HST rebate program

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Toronto, Aug. 11, 2026 (GLOBE NEWSWIRE) — New home buyers across Ontario are responding positively to the enhanced HST rebate program as new home sales rose 130 per cent year-over-year in the second quarter of 2026, said the Building Industry and Land Development Association (BILD) and the Ontario Home Builders’ Association (OHBA) today. The driving force behind this increase has been the announcement of the provincial-federal enhanced HST rebate program, which began on April 1 and took full effect in late June.

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The evidence is clear and direct. The leadership shown by the provincial and federal governments to exempt the sales tax off all new homes below $1 million is creating jobs, stimulating economic activity and improving affordability across the province.

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In the second quarter of 2026, there were 8,410 new home sales in Ontario – of which 4,765 were incremental and attributable to the HST rebate program, according to a report compiled by Peter Norman, Principal at Norman Economic Strategies Inc., and based on sales data collected by BILD, OHBA and Altus Group. This represents a 130 per cent year-over-year increase, as there were 3,645 new home sales across Ontario during the same period in 2025.

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“It is incredibly positive to know that 4,765 families across Ontario were able to purchase new homes as a result of the enhanced HST rebate program,” said Justin Sherwood, Chief Operating Officer of BILD. “The historic buying opportunity that the HST rebate program presents cannot be understated. As a result of the additional new home sales in the second quarter of 2026, it is estimated that in the first 3 months of the program 17,300 jobs in the construction industry were protected, around $2.8 billion in GDP was preserved and approximately $1.4 billion in gross government revenues was maintained.”

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In a report published by Altus Group in February 2026, combined housing policy measures were expected to generate between 18,000 to 23,000 net new home sales per year. This would help to preserve up to 51,000 jobs in the sector, $7.3 billion in GDP and $1.8 billion in gross government revenues. The market response in the first quarter of the program provides confidence that we are well on track to meet the economic and affordability impacts as outlined in February 2026 as the positive momentum of the HST rebate program is anticipated to continue.

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“It is important to note that these numbers also do not yet reflect the impact of the historic Development Charge Reduction Program (DCRP),” said Scott Andison, Chief Executive Officer of the OHBA. “Details of the newly-introduced DCRP are only now in place, and the first announcement for the City of Toronto was on June 23rd. It is anticipated that details of DC reductions in other municipalities across the province will be announced soon. We are likely to see a further economic boost as home builders get more shovels in the ground and the cost to build becomes more affordable.”