I think the building restrictions parent poster was referring to are density restrictions.

As an example, there are narrow strips of Toronto along major roads that allow skyscrapers, a lot of it a block away from single-family-home zoning. So all the demand for multi-unit housing bursts up in narrow corridors.

If, instead, quad-plexes became universally allowed, and lot height limits were increased to 3 (or 4? idk) stories, then single-family homes could be torn down or renovated to make room for up to 4 families to live comfortably on the same land.

Rosedale shouldn't exist. Single-family homes a short walk from downtown Toronto is a big part of why people are commuting from Barrie.

West Van is just as bad. Even small towns in desirable areas are seeing density restrictions causing a missing middle in housing.

We're in an era where corporations are buying housing at an unprecedented rate.

They have deep pockets, so even though the people holding mortgage will see relief, we will also see more housing bought by corporations.

The normal person cannot compete with the corporations, and they will have to either outbid the corporation, or hope that the seller find their storing touching and sell them the house even if the bid is lower.

So yeah, prices will raise for sure.