Richard, I think in some cases finding a place to live that doesn't have dogs is impossible or very difficult. Finances may also limit their options as well. I'm in Ontario and I'm pretty sure it's illegal to deny someone residence if they have a pet. I live in a high rise and go through the situation of people being afraid of my dogs on a fairly regular basis.
The other day though, something happened that really impressed me. Usually parents pass their fear onto their children I noticed. On this day though, a woman who is terrified of my dogs allowed her toddler to go up to my dogs and pet them while she stayed a good distance away. She obviously didn't want to pass her fear onto her child which was so nice to see! She's seen my dogs enough times to know their friendly and I've chatted with her before so she wasn't allowing her child to just go up to any strange dog.
Jazz, Shiloh Shepherd, 5 yrs old, CGC HIC
Bunny, GSD X, 7.5 years old