The Cure for Canada's Housing Crisis? Boost Immigration!
(media.communities.win)
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I haven't met a developer that likes controlled sprawl instead of just build however you want. Even if technically maybe what you're saying is true to maximize your profit, most developers just hate the government and want them out of their way. Not all developers are evil villains plotting to maximize their profit by screwing over the public. If the developers could build how they wanted without government oversight and ended up with a smaller return on capital but higher volumes, I think they'd be quite happy.