Assume that the annual growth in the real income in Japan is expected to be among 2 and 3 percent and that income elasticity of demand for housing in the Tokyo is estimated to be among 0.8 and 1.0 for rental units and among 0.7 and 1.5 for owner-occupied housing.
1. Discuss what will be the growth in demand for rental units over the next 10 years?
2. Discuss what will be the growth in demand for owner-occupied units over the next 10 years?