A City In Flux

Demographic changes are leaving an indelible mark on Toronto.

Toronto’s economy has long enjoyed the benefits of the city’s culturally rich and dynamic neighbourhoods. A continued influx of migrants, buoyant housing markets, and a rejuvenation of Toronto’s infrastructure have only added to this vitality in the past decade.

Economically speaking, a growing population is important for greasing the wheels of markets such as retail trade and housing. With the GTA attracting about two-fifths of Canada’s 250,000 annual inflow of immigrants over the past decade, the region has remained the country’s growth locomotive. Almost three-quarters of those living in the GTA are either first- or second-generation immigrants, making Toronto one of the most ethnically diverse cities in the world. A majority of these newcomers choose to locate in the City of Toronto, taking advantage of its diverse array of housing choices and services.

Many young and affluent individuals have also been lured to the downtown core, attracted by the so-called gentrification of a number of formally dilapidated areas. Home renovations and conversions in the Junction, Cabbagetown, King Street West, and a host of other areas have changed the faces of these neighbourhoods.

Improvements in downtown transit, infrastructure, and the amenities available have been important factors driving the trend towards downtown rejuvenation. These investments have also increased the city’s attractiveness as a tourist destination. More than ever before, Toronto streets come alive in the evening, a time when many other downtowns across Canada go silent.

But while much of the downtown has prospered, the United Way of Greater Toronto has highlighted evidence of growing poverty in the city’s inner suburbs. Many first-generation newcomers in particular not only suffer a greater incidence of poverty, but studies show they are staying there longer. A particular challenge is the self-perpetuating nature of poverty. Poorer communities have higher drop-out rates and weaker academic records, shutting people out of well paying jobs.

Despite its potential benefits, there are worries that the trend towards gentrification is making life harder for the poor by driving up costs, reducing the affordability of housing, and displacing low-income individuals.

As immigration is poised to become Toronto’s sole source of population growth, ensuring improved economic outcomes for newcomers will be among the city’s most important challenges. Post-secondary education, language training, and credential recognition will all be part of the solution. Success on this front will help Toronto build a true economic advantage .

Another major concern is the aging population of the city. Its impact is difficult to predict. In Toronto, seniors tend to live in the suburban areas surrounding the downtown core. As people grow older, some will remain in place while others will move to accommodations more suited to their lifestyle. These may be either outside of or still within their old neighbourhoods.

What is clearer is that the aging population will have a major impact on the types of services demanded. The downward pressure on the labour force will necessitate the establishment of flexible work arrangements by employers, pension plan changes, and others restructuring to accommodate the many older individuals who choose to remain attached to the labour market.