That won't hurt, but it won't fix the issue. There are places with little to no zoning that have gone up in value just as fast as everywhere else.

Japan has practically zero zoning, and yet Tokyo is still more expensive per square foot than any Canadian city in terms of the core area and that's with a population that's in decline. They built tiny to keep things barely affordable, but theres no reason why Canada should need to go anywhere near that level of density with the amount of land we have even in just the reasonable parts of Canada.