The reason this happens is that effectively anything except a single family home is banned.
So when a multifamily project is approved on a lit, developpers are thrilled to put a high rise - there's so much pent up demand they know it'll sell out.
On the other end, the ultra rich want bigger mcmansions.
I would argue that what is missing is mixed-use medium-density buildings. Blocks of exclusively residential buildings discourage people from walking to do their daily errands, because shops are too far from their home. This in turn increases the amount of car traffic in our neighborhoods, which sucks for everybody but especially for people outside of the vehicles that are causing that traffic.
My understanding of what's happening here in Toronto: it is such a hassle to fight for any new construction, that the only projects that are "worth it" are highrises. This means that 4-5 storey residential condos/rentals are not being built. Only the biggest buildings.
I might be out of touch, my read on Toronto some 14 years ago was that the city was dominated (at arms length) by the Toronto TSX - the single largest mineral resources exchange on the globe.
Mining mining was behind large law and accounting firms, underpinning the professional service layers, and driving the demand for high end mansions, out of town el ranchos, tax write off hobby projects for spouses etc.
On a pie chart for cash flow I'm guessing minerals and energy are still the big tickets there?
My original comment was only focused on construction approvals and the challenges with the City' Committee of Adjustments. Things are changing, where power to approve projects is moving more towards the Provincial level (which has pros: a saner, faster process. And cons: less ways for you to shape your local community, industrial-strength corruption)
In terms of economics, I'm not an expert. It looks like much of the local economy is based on reselling the same houses to each other at ever increasing prices.
So when a multifamily project is approved on a lit, developpers are thrilled to put a high rise - there's so much pent up demand they know it'll sell out.
On the other end, the ultra rich want bigger mcmansions.
What's still lacking is sane 2-8 unit zoning.