Ontario developers raised new-home prices despite weak demand after a temporary 13% HST removal aimed at improving affordability.
The rebate applied to homes up to ~$1M, phasing out by ~$1.5M, covering deals signed from current-Q2 2026 to current-Q1 2027.
Eligible buyers included primary homeowners and rental investors meeting construction and completion deadlines extending to late 2028 and 2029.
Prices rose ↑~11% to ↑~14% after the policy, suggesting builders absorbed savings rather than passing benefits to buyers.
The policy may increase provincial borrowing pressure and failed to address deeper affordability issues or revive overall housing demand.
September 2, 2026
Toronto Affordability Gains in Q2 2026 | Reach out to me for buying or selling. First time? Call for a FREE consultation.
In Late-Q2 2026, Toronto saw one of the strongest affordability gains as falling home prices, not easier financing, became the main driver. Toronto recorded a ~2.5-point affordability improvement after its representative home price fell ~4%...