Yeah biggest misconception about Canada. It may be the second largest country by surface area but an enormous majority of all of that land is unsuitable for housing development due to either 1) literally being unbuildable ie. tundra or sheer mountain or bog 2) enormously more valuable for agriculture (ie. all the prairies).

There's places where sure yes it would be technically possible to build some new town but it's so cold and miserable that no one would want to and there's no local economic reason to put such a town in such a far flung place. Ultimately we probably will though if the population continues to increase at such a pace.