This problem is bigger than just Toronto and Vancouver. It's happening (happened) in most "world class" cities in politically stable countries around the world. 

You can look to Manhattan, London, or Sydney to get an idea of how crazy expensive a city can get, yet people still want to be there. Toronto has a long way to go yet.

There is the beginnings of a rebirth of second-tier cities on the rebound. Driven by people like this author's kids who weigh the pros and cons of moving elsewhere. Pittsburgh, Buffalo, Hamilton and others are seeing people opt for the benefits of a smaller city over the lifestyle sacrifices that would be required to live in really expensive "centre of the universe" (barf) cities.