The expanded HST rebate for new homes in Ontario helped drive a significant increase in Greater Toronto Area home sales in May, though the condominium sector continued to lag, according to a new report from the Building Industry and Land Development Association (BILD).
Low-rise homes lead the surge
BILD reported Monday that 1,023 new homes were sold in May, more than triple the record low of 310 sales in May 2025. Low-rise homes—defined as properties with one to four floors—accounted for 830 of those sales, while only 193 new condo units sold. The single-family home sales were well above the 10-year average for a second consecutive month, though they dipped slightly from April, when 1,100 new homes were sold.
“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. He attributed the decline to potential buyers awaiting clarity on how the rebate would be administered.
Condo market continues to struggle
The condominium sector faced ongoing challenges, with sales about 57% below the 10-year average in May. Sherwood noted that “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).” The benchmark price for new condominium apartments in May was $1,029,489, while single-family homes averaged $1,427,543—a 5.2% decrease from May 2025.
Rebate details and impact
In March, the federal and Ontario governments announced a one-year expansion of the HST rebate for new homes, offering buyers up to $130,000. However, Sherwood pointed out that eligibility requires “defined start and completion dates for new housing projects that are too tight for most new high-rise condominium projects to meet.” This may explain why condos have not benefited as much from the rebate. “Providing clarity on these details will ensure that the momentum experienced since April continues,” he added.
