Developers are for profit entities - they exist to make as much $ as possible, not to satisfy demand. They are building more town-homes, semis and condos because they are more profitable, not because of demand.  Large square footage condos are not built because they are not as profitable per sq ft. If you want to build farther outside the GTA, then include roads and infrastructure requirements into the costs - builders don't care about this - they'll be long gone by the time people are complaining about traffic on the 401 and DVP. This is too complicated an issue to be solved by just building more.