Real estate
New houses are under construction in a new subdivision in Golden, Colorado August 28, 2014. The National Association of Realtors said its Pending Home Sales Index, which leads home resales by a month or two, increased 3.3 percent in July to its highest level in 11 months. Reuters/Rick Wilking

The latest housing survey on Canada by PricewaterhouseCoopers and the Urban Land Institute has thrown up some interesting trends pertaining to Canadian homeowners. It says Canadians are choosing the convenience of city life over and above the generous living space in the suburbs. Accordingly, the real estate market in big cities of Canada is now driven by this factor. The report, released on Tuesday, evaluates the various reasons and consequences from this new trend.

Downtown Preferred

The outlook says the preference to move downtown will continue as Canadians love to stay in urban cores. This is also reflective of the changing demographics as young families love city life even if the properties are smaller compared to the space and cosiness of houses in the suburbs. The conveniences in the core city compensate for the lavish suburban space factor, said the 112-page report, according to a report in MJ Times. The trend is also endorsed by the data from Statistics Canada, which reveals that the population growth in urban centres has been 7.1 percent between 2006 and 2011.

Main Factors

Frank Magliocco, Canadian real estate leader at PricewaterhouseCoopers, sees a number of factors driving this urban growth. One factor is the rising awareness among Canadians about the environmental costs associated with urban sprawl. Second is the cost of long commuting time and travel. But, he says, the exodus to urban centres is also a matter of concern. One thing is, what will happen to urban properties, once the younger generation grows out of them.

An example is the condo boom in Toronto and other cities, posing the question what will happen to them, if the lifestyles of the young urban singles and couples are to change. But Magliocco sees two options. Either the Canadian cities will opt for the route taken by New Yorkers, where families are ready to sacrifice space to live in the city, or like the Londoners, where families love to live outside the city and commute downtown for work.

Mixed Use Properties

The report infers that developers are already responding to the needs of downtown dwellers by building more mixed-used properties covering residential and retail space. The report mentions Calgary, Edmonton and Vancouver, as cities having maximum potential for residential growth in 2015, spurred by more job creation in the West than in Central Canada, while Calgary and the Greater Toronto Area drive retail growth.

Meanwhile, Cbc. Ca News reported that Toronto is emerging as the fourth most livable city in the world but one of the best places to do business. The latest report card on the city, by the Toronto Foundation touches upon many aspects, from economy to crime rates. Rahul Bhardwaj, CEO, Toronto Foundation said Toronto has a lot of things to be proud of.