I'm pretty sure Urbanization will make animals (that are closer to humans like dogs and cats) incredibly smarter. Dogs got closer to humans thousands of years ago. Their role was to protect. In the process, they became less intelligent than their ancestors: The wolf.

But things are changing. Human are now picking dogs to be a companion, not for protection. They are letting their dogs inside the house. They are playing with them. Human also select smarter dogs like German Shepherd because they are easy to train.

The trend is new. I mean we are only a few hundred years into urbanization and genetics is a slow process. But selection is real and humans are very selective. This will keep the most intelligent race/dogs and breed even smarter dogs.

I know for a fact that my german is more skillful than my parents'. That's because living in an apartment requires extra skills. As human select animals that are more adapted, we'll have dogs who are savvy about doors, bells, cars, refrigerator, toilets, etc...