The great recession appears to have had a significant affect on how North America’s major cities are growing. Since 2009, more growth is happening in walkable transit oriented communities than on the edges of metropolitan areas.
Christopher B. Leinberger & Patrick Lynch, from the George Washington University School of Business, have tracked growth in major cities the United States and have found that growth patterns have shifted significantly since the recession. For example,
“Both Metro Miami and Atlanta sprawled faster than most metro areas for decades. In this real-estate cycle, which began in 2009, these two metros indicated a fundamental shift from drivable suburban office development to walkable urban, as their [walkable neighbourhoods] are rapidly increasing their share of the office market.”
The same trends observed by Leinberger and Lynch in the United States can be observed in Toronto. People increasingly want to live in walkable neighbourhoods. The Pembina Institute in a recent survey found that an astounding 81% of people in the Greater Toronto Area would prefer to live in a neighbourhood where they can walk to stores and had frequent and reliable transit service.
This stated preference is playing out in what is happening on the ground. Construction has shifted from the drivable suburban developments to walkable urban development. For example, over the last four years, over 40% of all new units were built in the city of Toronto, a significantly higher percentage than at any time in the last 30 years.
Downtown Toronto has become the fastest growing area in the Greater Toronto Area. Between 2006 and 2011 downtown grew at four times the rate of the rest of the city of Toronto.
In addition to the significant amount of residential development, there is 5.2 million square feet of office space being built in downtown Toronto, which is slightly less then one-third (31%) of all office space currently under construction in all of Canada. This is a significant change from the early 2000s when downtown Toronto was experiencing almost no office growth.
Five years is not a lot of time. Yet, it is becoming clear that in Toronto, and across North America, the geography of growth has fundamentally shifted. People want to live in neighbourhoods where driving is a choice and where you can take transit or walk to work. These people are now transforming the geography of growth in the Greater Toronto Area, and across North America.