Canada

The fact that the entire condo market is built with investor sized units would suggest otherwise (or suggest that builders build what the market demands and if the market is all investors they will build investor focused units).

That's still fundamentally a supply (and by extension pricing) issue. Prices are high, therefore small units are the only thing people can realistically afford, therefore that's what developers build.

I agree, not sure where you saw that. Was it where I said that green belt policies are “very necessary”?

Here: "When we had urban sprawl, you could still buy cheap land on the outskirts and build your own house if investors stopped building new developments, but with (very necessary) greenbelt policies, it eliminates that release valve, putting the housing market basically entirely in control of investors who’ll keep it inflated to profit themselves."

The point is that policies that combat urban sprawl have also increased financialization of the housing market

How do you define "financialization" here, especially in the context of non-rental units? If we're talking about REITs, sure, but rentals are only a small part of the picture.

both my making housing a more limited commodity (which incentivizes investors to buy)

It also incentivizes builders to build, so as long as that isn't impeded, prices should stabilize. Unfortunately building is severely impeded, which is what I mentioned in my earlier post.

and by making it impossible to build a house unless you’re a large corporation that can afford to build a multi-tenant building.

Again, this is a land value issue, not one of construction costs. Of course land is going to be expensive in an urban centre, as it should be! It's a very limited resource. it makes much more sense to have two hundred people living on a building lot rather than four. Hence my confusion about your desire to reduce supply even further in order to reduce the price of housing.