The BC government has been relatively successful at this. Housing prices in Vancouver used to be ~2X those of Toronto; now Toronto is more expensive than Vancouver.
The Ontario Housing Affordability Task Force released a list of 55 things to do to reduce housing prices. BC has implemented a far larger share of that 55 than Ontario has.
> In my opinion, the federal government should be designing simplified building and zoning guidelines and offering unprecedented grants (on the order of tens of billions) to provinces in a first come first serve manner. Have provinces compete on urgency to receive the most funds, tapering off the offer the longer provinces hold out.
That's basically what they're doing. They can't change zoning without changing the constitution, but they are giving out tens of billions of dollars conditional on appropriate zoning changes. BC has received lots of money that way, Toronto has bypassed the province to get theirs and Alberta has made it illegal for Calgary & Edmonton to access theirs.