From what I've experienced, this is rapidly becoming untrue - CoL in Toronto has become very high, friends are paying comparable to what I paid in NYC but salaries are definitely lower. They're paying in CAD what I paid in USD, but are earning 20-30% less. Food is also more expensive (particularly eating out), on the whole, than NYC.
Most new construction apartments are quite small, and the older, larger ones command a significant premium. You can move out of the downtown core (to North York, Scarborough, etc) but then you're committed to a long commute on the slow TTC or sitting in traffic on the 401.
MTL is much cheaper, but salaries also lag even further.