Where I live the numbers your suggesting would be amazing!
In Vancouver proper, Average 3 bedroom house price is $2.1M. A townhouse or condo of that size is $1.5M. Your typical house payment is going to be much higher than $1500/month. Rents are probably in the $3K+ range -- I don't actually have data on this. Lots of factors there. I don't think zoning is one of them as there is constantly land assemblies and razing blocks of houses for town houses and condos. I suspect it's more geography: we're up against and ocean, a border and a mountain range.