More Canadians are looking at buying smaller homes, a Royal Bank survey released Wednesday suggests.

The proportion of potential home buyers interested in less space hit 27 per cent in January, up from 19 per cent in the bank's 2008 survey, and nearly double the 14 per cent a decade ago.

But more than two-thirds (68 per cent) of potential buyers who may close a deal in the next two years still want a detached home, with condos and lofts trailing at 12 per cent, townhouses at eight per cent and semi-detached homes at six per cent.

Almost everyone in the survey, the bank's 16th home ownership study, said low energy consumption is an important consideration when buying a home.

"Energy efficiency is rated just as important as the look and appearance of the home," 94 per cent of the respondents said.

Potential buyers are encouraged by low interest rates and falling prices, "but in today's economy, we're also seeing that many Canadians are increasingly mindful of longer term home features that will reduce their monthly energy costs," said Karen Leggett, head of home equity financing for the bank.

Most potential buyers wanted a standardized energy rating available for all homes and three-quarters believe that environmentally friendly features are important factors.

RBC is the sponsor of Now House, part of Canada Mortgage and Housing Corporation's sustainable housing initiative. The house, a retrofitted 60-year-old home, is designed to generate as much energy as it uses.

It has upgraded insulation, reduced air leakage, new windows, radiant floor heating and solar panels.

The bank survey was done by Ipsos Reid from Jan. 6 to 9. The online survey was based on a sample of 2,026 adult Canadians, and is considered accurate to within plus, or minus, 2.2 percentage points, 19 times out of 20.