Canada is a basket case for housing development but the only bright spots for outpacing demand with housing are Albertan cities with no rent control like Calgary and Edmonton.
Edmonton recently outpaced Toronto in housing development on an absolute basis with much lower housing prices and less than 1/5th the population!
The regulatory environment in Alberta is such that it permits housing to be built, and it does.
The same cannot be said of Toronto (or everywhere else in the nation that isn't the Prairies for similar reasons), for landed interests and the bureaucracy and corruption that comes with them are a lot more entrenched in that area.
I think you're neglecting that most of Toronto is restrictively zoned for SFHs while Edmonton is upzoned across the city for 8-plexes at a minimum.
Toronto has a cumbersome permitting process that runs from months to years, while Edmonton's process is mostly automated and grants permits within weeks.
Regardless, the other relevant factor here is the actual price of housing, which is substantially higher in Toronto... and yet Toronto struggles (by design) to build anything.
Edmonton recently outpaced Toronto in housing development on an absolute basis with much lower housing prices and less than 1/5th the population!