Homebuyers are opting out of living in larger cities, with cheaper options in mid-sized cities like in Waterloo Region

A report released by RBC shows that large cities like Toronto, Montreal and Vancouver are less appealing to young home buyers.

The City of Toronto experienced a deficit of 13,000 millennials seeking homes, opting to look at mid-sized cities instead for cheaper options.

This also has a significant impact on real estate investors.

Cliff Rego of Rego Realty was a guest on Kitchener Today with Brian Bourke on 570 NEWS and talked about the effect it's had.

"Homes in mid-sized cities are a third of those in Toronto," he said, "So investors are buying up properties in mid-sized cities in places like Kitchener or Waterloo, where the rent isn't that different than Toronto and then it's a win-win for them."

The report also shows that Canada has some of the highest home ownership amongst young people with 40 per cent of homeowners being under the age of 35.

