We’ve seen this trend growing in San Francisco and NYC, but now Toronto has joined in the “micro condo” market.  These used to be pied-a-terres  that people generally just used as an occasional place to stay in the city when they didn’t feel like commuting back home.  With the current economy though they have become desirable places for full time living.  This is truly “Downsizing” at it’s most extreme.  Check out this article from the Toronto Star about the Incredible Shrinking Condo.