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(+1)

so how to increase income?

(+2)(-1)

By adding more housing and keeping stores filled and only building new ones when you add more housing. It's important to fill factories/stores to max before building more housing. Also, start with markets as these accommodate less shoppers and are easier to max out and start generating profit. You can upgrade markets to shops when more houses are added in the area.

Two sets of five houses and a market with a factory + water tower in the middle should do the trick.