Step 1 :Given that 69% of the population lived in single-family dwellings and 31% in multiple housing, we can represent this as an initial distribution vector \(x_{0} = [0.69, 0.31]\).
Step 2 :Also, we know that of those who had been living in single-family dwellings, 86% still did so, but 14% had moved to multiple-family dwellings. Of those in multiple housing, 95% were still living in that type of housing, while 5% had moved to single-family housing. This can be represented as a transition matrix \(T = [[0.86, 0.14], [0.05, 0.95]]\).
Step 3 :Thus, the transition matrix is \(\boxed{\left[\begin{array}{ll} 0.86 & 0.14 \ 0.05 & 0.95 \end{array}\right]}\) and the initial distribution of housing is \(\boxed{x_{0} = [0.69, 0.31]}\).