Ontario New-Home Sales Surge 130% in Q2 2026 Driven by HST Rebate Program

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Ontario's new-home sales saw a significant increase in the second quarter of 2026, primarily fueled by the enhanced HST rebate program. Industry leaders predict continued positive momentum in the housing market.

In the second quarter of 2026, Ontario experienced a remarkable 130% year-over-year increase in new home sales, as reported by the Building Industry and Land Development Association (BILD) and the Ontario Home Builders' Association (OHBA) on Tuesday. This surge is largely attributed to the provincial-federal enhanced HST rebate program, which commenced on April 1 and was fully implemented by the end of June. The total number of new home sales in Ontario reached 8,410 for Q2 2026, a significant rise from the 3,645 sales recorded during the same period last year. Of these, 4,765 sales were directly linked to the HST rebate program, demonstrating its impact on the market. The figures were compiled in a report by Peter Norman, Principal at Norman Economic Strategies Inc., with data sourced from BILD, OHBA, and Altus Group. An earlier report from Altus Group, published in February, projected that various housing policy measures could result in between 18,000 and 23,000 net new home sales annually. This increase is expected to help safeguard approximately 51,000 jobs within the sector, generate $7.3 billion in GDP, and contribute $1.8 billion in gross government revenues. BILD has expressed optimism based on the initial response to the HST program, indicating that the market seems poised to meet these projections and that positive momentum is likely to persist. Justin Sherwood, Chief Operating Officer of BILD, remarked on the significance of the enhanced HST rebate program, stating, "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. The historic buying opportunity that the HST rebate program presents cannot be understated." He further noted that due to the additional new home sales in the second quarter, it is estimated that approximately 17,300 construction industry jobs were preserved in the first three months of the program, along with around $2.8 billion in GDP and approximately $1.4 billion in gross government revenues. Meanwhile, Scott Andison, Chief Executive Officer of the OHBA, pointed out that the full effects of the recently introduced Development Charge Reduction Program (DCRP) have yet to be seen in the Q2 figures. "Details of the newly-introduced DCRP are only now in place, and the first announcement for the City of Toronto was on June 23rd. We expect further announcements regarding DC reductions in other municipalities across the province soon," he stated. Andison anticipates that as home builders commence more projects and construction costs become more manageable, the economic benefits will continue to grow.

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