That's generally happened. House prices have notably increased not just in major cities, but also in smaller municipalities within commuting distances of Toronto, Vancouver, Ottawa, and Montreal.

Truly "cheap" housing is historically limited to rural areas far outside the traditional commuting area of the big cities, but the covid shock has put even that in question through remote work. Even though a small number of people in absolute terms are moving to rural areas (with sufficient Internet infrastructure, etc), that still can represent a large relative demand increase.

Some of this will probably shake out over the next few years as construction catches up where it can, but that's cold comfort to younger families on the market today.