The property tax rate is the same for a whole municipality whether you are downtown in high density housing or in the burbs.
You need more roads/public transportation/water mains/gas mains/buried cables etc to serve fewer people in the suburbs.
Make property taxes proportional to the infrastructure required to support a neighbourhood.
Public transportation in suburbia? Does it really happen in Canada? In the US suburbia subsidizes public transportation without using it.
Not only that, but tax funds are typically funneled from denser, more sensibly planned areas of cities to the more well-off sprawled suburbs. So people who aren't even involved in the process of participating in the market for sprawl built houses will pay for the resultant externalities created by the need for maintenance.
In Japan people are far more reliant on the conscientiousness of their neighbors to maintain a peaceful and quiet environment than people in Canada and the United States are. They also have a low crime rate and safer, cleaner inner cities.
Obviously an entire population lives this way, and it works well for them, but that kind of housing situation would be a hard sell in North America.
However the ZONING codes could be adopted to much benefit. The BUILDING codes, I still maintain we need to spec even higher, so that I can have a refuge of solitude from the sounds, smells, and presence of Wheaton's Law failing humans.
If builders in Canada have to build high density housing to a more costly specification then it’s justified that they won’t find it cost effective even if given the chance to do so.
In effect, the low cost of Japanese housing could be from both the zoning code and the building code. (As for culture, those two affect culture and are affected by culture so it’s hard to distinguish.)
Zoning laws are an expression of preferences by the existing homeowners who want their neighborhoods to retain their current characteristics.
Look at the history of how this happened. The suburbs did not magically appear out of nowhere after WWII against the wishes of the population, and they were not legalized into existence with zoning laws. They were built, people liked them and bought houses in them, and then they passed zoning laws to keep them.
Basically replicate the pre-car environment that the world's greatest cities were designed and developed during.
The only things being built in Toronto are either single family homes, or giant 50 floors condos. It takes YEARS of consultations to build anything in Toronto so developers only bother going through that process for very very high buildings. It's not worth it for the type of higher density apartment of 3-4 stories.
It's called the missing middle, there's a good podcast/article here: https://99percentinvisible.org/episode/the-missing-middle/
You only end up with that if that is what sells, i.e. that is what homebuyers want. If the average Canadian didn't want that, the developers would build something else.
Your real problem here is with the preferences of the people who buy new homes, and you aren't going to change those preferences by regulating housing developers.