I'm with cooker on this one - there are a lot of relatively simple solutions to the high cost of suburban living. Probably the simplest is the residential intensification of the inner suburbs, which will lead to shorter distance commutes and also the intensification of commercial and public transportation development. Cities have many zoning restrictions and bylaws that have artificially restricted intensification, and have supported suburban, greenfield development. Take some of these controls away, and you would have fairly rapid intensification. Why - because the existing property owners will have the ability to cash in huge profits.
Examples include - legalization of basement apartments (Toronto did this years ago, but the intensification was muted by the fact that there were already thousands of illegal apartments out there) however, including a basement suite can reduce the carrying costs of a property by about $1000/month (tax benefits for this are higher for Canadians than Americans). Easing the parking requirements would accelerate this.
Allowing subdivision of lots to build/renovate one house into two houses. Apparently the good people of Calgary are unable to live in two storey houses if the lots are less than 35ft wide - the horror! Allowing existing property owners to build two semidetached houses on a 40ft lot with two basement suites can quadruple the density of a suburban neighbourhood, and the property owner converts a $300 000 property with no income to two $250 000 properties with between $500-$1000 dollars a month income. Of course you need to redevelop and spend capital to do this, but with that kind of profit available, you'll see people lining up to invest. Remember that in many cities there is a shortage of housing, particularly affordable housing.
With money making opportunities like this available, there is a lot of scope for urbanization, if only the nanny state would get out of the way of people realizing the potential value of their property.
Unfortunately the people who are most resistant to loosening the laws are local residents - the ones who stand to benefit the most from changes like this. Go Figure.
If I had to choose one bylaw change that would intensify our cities the most at the least cost - it would be to allow Parking Free Housing to be built. Give those of us who are car-free or car-lite the ability to benefit from our choices by not forcing the cost of parking down our throats.