New home sales in the Greater Toronto Area (GTA) got a significant boost from the enhanced Harmonized Sales Tax (HST) rebate program in May, according to a report from the Building Industry and Land Development Association (BILD). The program, which provides a maximum rebate of $130,000 on new homes valued at up to $1 million, helped drive sales of low-rise homes above their 10-year average for the second consecutive month.
Sales figures and trends
Altus Group, which provides data for BILD, reported a total of 1,023 new home sales in May 2026, a sharp increase from the record low recorded in May 2025. However, this total was still 57 per cent below the 10-year average of 2,353 units for a typical May in the GTA. The single-family sector led the recovery, with 830 sales—26 per cent above the 10-year average and a significant year-over-year increase.
“GTA new home sales in May continued to respond positively to the HST rebate program, led by the single-family sector which surpassed its 10-year average for the second consecutive month,” said Edward Jegg, research manager at Altus Group.
Condo sales lag behind
Condominium apartment sales, including units in low, medium and high-rise buildings and stacked townhouses, did not benefit from the rebate program to the same extent. Only 193 units were sold in May, a figure 89 per cent below the 10-year average. Jegg attributed this to two main factors: much of the existing condo inventory is locked into legacy pricing with higher costs, and new high-rise projects are unlikely to meet the “substantially completed” requirement of the HST rebate program.
Rebate program details and impact
On March 25, 2026, Ontario, in partnership with the federal government, announced the expansion of the HST rebate. The program removes the full 13 per cent HST for eligible buyers of new homes valued up to $1 million, for a maximum rebate of $130,000. It is part of the 2026 Budget and builds on Ontario’s October proposal to rebate the provincial portion of the HST for first-time home buyers of most new homes.
BILD noted that the need for clarity on how rebates are administered contributed to some potential buyers delaying purchasing decisions in May. Despite this, the association said new home buyers in the GTA are responding positively to the program, calling it a historic buying opportunity.
Inventory levels decline
Total new home remaining inventory in the GTA dipped below the 20,000 mark for the third time in 24 months, standing at 18,763 units in May. This includes 13,138 condominium apartment units and 5,625 single-family dwellings. The combined inventory level represents 32 months of supply, based on average sales over the last 12 months. BILD anticipates that as sales increase, the months of inventory statistics will decrease rapidly.
