According to a new report produced by PricewaterhouseCoopers and Urban Land Institute, homeowners who choose the convenience of city life over the more generous living space in suburbia are driving Canada’s real estate market.
The most recent numbers available show that the population of urban centres grew 7.1 per cent between 2006 and 2011, according to Statistics Canada.
Much of this is due to changing demographics as young families and millennials forgo the white picket fence and house in the suburbs to take advantage of downtown living, where properties are smaller but offer more conveniences.
Meanwhile, an expected rise this year in interest rates from historically low levels may also influence demand in the housing market. Developers responding to the needs of downtown dwellers by building more mixed-used properties, which include residential and retail space.