Water capacity constraints could prevent Waterloo Region buyers from benefiting from new home rebate

Builders warn a freeze on development in Waterloo Region could mean buyers won’t get to take advantage of a temporary rebate. CTV’s Spencer Turcotte reports.

Developers and real estate industry representatives are warning that Waterloo Region’s ongoing water servicing constraints could prevent prospective homebuyers from taking advantage of the GST/HST First-Time Home Buyers Rebate aimed at improving housing affordability.

Thousands of proposed housing builds across the region remain stalled as municipalities grapple with limited water servicing capacity, halting approvals for many new developments.

Industry leaders say the delays come at a critical time, as a recently announced rebate program offers significant savings for buyers of newly built homes.

“The enhanced HST rebate program will come to an end on March 31, 2027, so we have less than 10 months remaining to provide current and future members of our region with the ability to take advantage of this rare and limited-time opportunity,” Activa CEO John Hartwick told Waterloo Region council during a meeting on June 3.

The program allows eligible buyers to save up to $130,000 on a newly built home. To qualify, a purchase agreement must be signed before March 31, 2027.

“Then the unit needs to be built by the end of 2029, if not 2031, depending upon the type of unit,” said Joseph Puopolo, president of Polocorp Inc.

Regional council recently approved an interim servicing allocation plan intended to allow some projects to proceed beginning this fall. However, developers said only a portion of stalled developments will receive access to servicing capacity, leaving many projects unable to move forward.

“We have many pushes from the feds and province to get housing starts — [Housing Stability Program] being one that helps specifically in homeownership — but developers simply can’t pull permits right now to build that product,” said Stephen Litt, chief development officer at Vive Development Corporation.

Real estate representatives said the rebate has already generated interest among prospective buyers, but without available housing inventory, that demand may not result in sales.

“Of course, if builders can’t build, we can’t get them in,” said Andrea Fedy of the Cornerstone Association of REALTORS during the June 3 meeting.

Developers said the implications extend beyond housing supply and affordability, raising concerns about the region’s long-term growth and ability to attract new residents.

“It hasn’t fully been understood or contemplated all the different ways that this will impact us,” Puopolo said.

The uncertainty is compounded by the fact that details surrounding the rebate program have yet to be fully finalized, leaving builders and buyers with unanswered questions about eligibility requirements and timelines.

For prospective homebuyers in Waterloo Region, industry leaders said the challenge is no longer solely about affordability. It is also about whether new homes can be built and sold before the opportunity to benefit from the rebate expires.