Toronto New Home Sales Crash as Federal Incentives Fail to Boost Market
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In April 2025, Toronto's new home sales plummeted to unprecedented lows, with only 310 units sold—a 72% decrease from the previous year and 89% below the 10-year average. This downturn, surpassing the depths of the 1990 housing slump, reflects a market paralyzed by uncertainty, particularly concerning potential tariffs and economic instability. The Building Industry and Land Development Association (BILD) attributes this decline to eroding buyer confidence amid unpredictable market conditions.
In response, the federal government introduced a GST/HST rebate targeting first-time homebuyers, offering up to $50,000 in savings on new homes priced up to $1.5 million. However, industry leaders, including BILD, argue that this measure is insufficient, as first-time buyers constitute a small segment of the new home market. They advocate for broader incentives encompassing all new home purchasers to effectively stimulate sales and construction activity.
To address these concerns, a coalition of industry organizations, such as the Canadian Home Builders’ Association and Habitat for Humanity Canada, issued an open letter to Prime Minister Mark Carney. The letter urges the government to expand GST exemptions to all new homebuyers and adjust rebate thresholds to reflect housing costs in high-priced regions like Toronto. The collective emphasizes that more comprehensive policy reforms are essential to restore market confidence and revitalize the housing sector.
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