People are moving from toronto and vancouver, selling their houses there for a million, and then going to other cities and overpaying for houses there. That brings up the cost across all of canada. On top of the excessive immigration that is putting a huge strain on housing and healthcare. It has provided a massive upwards pressure on housing prices across all of canada.

And no, canada does not have the capacity to build housing at the rate immigration is bringing people in. half a million per year is a small city each year, mostly going to areas where work is available.