Toronto plans to overhaul zoning and housing approvals by early this year.
Residents in unsubsidized units will pay more so residents in subsidized units pay less.
A recent report showed that Canada has fewer housing units per capita than any other G7 country.
The program will likely mainly benefit middle- and upper-income households.
In some Canadian cities, housing costs grew more than 50 per cent faster than incomes.
The federal government recently committed $1.37 billion to two major rapid transit projects in Metro Vancouver.
The laws of supply and demand apply to housing, like any other good.
Supply elasticity is a central factor in any analysis of home-price growth.
The proposal includes an open-ended zero-interest loan.