There has been a problem with housing supply in Canada, most acutely, in Vancouver and Toronto, for 20 years. It's mainly been driven by policies at the local, Provincial and Federal levels that have added time and expense to the development process, while at the same time reducing the amount of development land. Increasing the cost to develop, while reducing the supply of developable land has caused housing prices to soar. Demand was stable, supply was dropping. Prices went up. A lot.
During the whole period from about 2000 to 2021 immigration levels were pretty consistent at around 250,000 to 300,000 per year and that is/was sustainable. More recently though, immigration limits were raised by the Feds to 500,000 to 1,000,000 per year, without any regard for where we were going to put everyone, and demand increased even further, while supply is still woefully low. The increase has put incredible strain on the system. Immigration increases exacerbated the existing problem, it didn't create it.
The Feds are now looking to reduce immigration levels because 500K-1M per year isn't sustainable. Canada needs to get the number back to the 250K-300K level, while fixing the systemic problems that have existed for two decades in its housing industry. I could and should write a book on this.