Which factor contributes to increased poverty and housing shortages according to the provided information?

The correct response highlights the significant impact a poor economy and high unemployment have on poverty and housing shortages. When the economy is struggling, it leads to reduced job opportunities for individuals, which in turn decreases their income levels. A high unemployment rate means that more people are without stable work, making it difficult for them to afford basic necessities, including housing.

Additionally, in such an economic climate, there is often a reduced demand for housing as fewer people can afford to rent or buy homes. This can lead to an oversupply of housing that remains vacant, further exacerbating the issue of housing shortages. The combination of financial instability and lack of employment opportunities creates a cycle that deepens poverty and limits access to suitable housing, ultimately contributing to the housing crisis in affected areas.