Some municipalities have enacted bylaws trying to limit the number of occupants per bedroom or unit. For example, there are some cities that want to limit bedrooms to be occupied by no more than 2 people. (Get your crying baby out of your bed!) Others limit a unit to no more than 8. (No TV reality shows for you!)
A few years ago, I worked on the federal census. We actually received census forms that indicated that there were houses or apartments had more than 8 people in them. I remember personally checking one form that said that an apartment (not a house) had 15 people in it. (Sorry, don't remember where, and if I could remember, I would not be able to tell you where.)
I'm guessing that Rob Ford would be one person who would want to enforce such a occupancy bylaw in Toronto.
The trouble I find is that in a recession, people are trying to save money, including lodging costs. One way to save money is to squeeze in more people into a residence.