The panels of experts I have listened to (last one on CBC Metro Morning a few weeks ago) seem to be aligned that the big failure of Toronto is developing affordable rental inventory. I think that’s where the focus should be.
It seems Toronto is on its way to becoming a mega-city, a characteristic of which being that even upper middle class cannot afford home ownership. Ever. You rent. It’s kind of how it goes.
Our price per sq ft for a condo, let’s say, is just over half of Manhattan, so we have a lot of room to grow. It’s only going to get worse and I’m not convinced there is any real market intervention that will cool prices other than interest rates rising or a sudden supply of housing being built. I don’t expect either. Not much you can do with mass migration and only so much space.
I agree with your point that if we do want to stretch ourselves to own, we have to relax our expectations when it comes to space, location or furnishings. I believe that will happen over time.