There has been increased demand for low-rise new home sales in the Greater Toronto Area (GTA) following the introduction of the HST rebate program. The latest data from the Building Industry and Land Development Association (BILD) shows the market outperformed its 10-year average for a fourth consecutive month in July.
Meanwhile, the condominium sector has continued to struggle to fully participate in the HST rebate program as rules around construction start and completion dates limit this segment of the market.
There was a total of 1,018 new home sales in July, up significantly from the record July low of 2025 but 40 per cent below the 10-year average, according to Altus Group. Historically, total new home sales for a typical July in the GTA would be 1,707 units based on the previous 10-year average.
“July new home sales across the GTA continued to reap the benefits of the HST rebate program led once again by the single-family sector,” said Edward Jegg, research manager at Altus Group. “Builders have been responding to the uptick in demand with a steady flow of new low-rise product that is keeping the sector in balance. This balanced state serves to avoid the upward pressure typically placed on pricing in a rising market.”
Condominium apartments, including units in low, medium, and high-rise buildings and stacked townhouses, accounted for 237 units sold in the GTA in July. This was a 40 per cent increase from July 2025 but 80 per cent below the 10-year average.
There were 781 single-family home sales in the GTA in July, a significant year-over-year increase and 50 per cent above the 10-year average. Single-family homes include detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).
The average price for new condominium apartments was $1,054,938, up 2.5 per cent compared to last year. The price for new single-family homes was $1,362,433, which was down 8.5 per cent over the last 12 months. These are gross prices, not reflective of any HST rebate, in order to facilitate a like-on-like comparison with previous years. Purchasers who qualify for an HST rebate would realize additional benefit from this rebate.
Total new home remaining inventory in the GTA remained balanced with 18,546 units as builders responded to increased sales levels with a steady flow of product. This includes 12,345 condominium apartment units and 6,201 single-family dwellings and represents a combined inventory level of 36.5 months, based on average sales for the last 12 months.
“I have had the opportunity to speak to a few of the homebuyers who have purchased new homes in the GTA as a result of the HST rebate program,” said Dave Wilkes, president and CEO at BILD. “They are thrilled at what this program has been able to do for them in terms of affordability and new homeownership. It is clear that measures like these not only make a genuine impact on new home buyers, but also help to improve the economic outlook of the region and protect jobs. We look forward to working with governments to continue to help make homeownership a reality and encourage the same results in the condominium sector as well.”
