Rational Ideas, 
Doc has clearly explained in many other posts that the "demand" isn't local.  Local workers aren't making the kind of money needed to pay the sky-high prices, and the population hasn't risen dramatically. Take away the foreign money that is being parked/laundered in the purchases of "non-foreign" buyers (students, 10-year visa holders, work permit holders, permanent residents, Canadian citizens), and the "demand" to pay two million-plus for a home will dwindle.  See Docs posts on other boards and my post below for a few ways that governments can make it much harder to park/launder foreign money in Canadian real estate.

A fresh supply of single-family homes paving the Greenbelt won't dent the cost for local buyers because there is an "unlimited" pipeline of foreign capital trying to "get out of Dodge."   (See this past weekend's G&M.)  And, the response to this from all parties and governments is:  "Bring it in!"

Environmental and infrastructure mayhem for what?