Final answer:
Residents were unable to afford maintenance costs due to the government stopping its financial assistance, leading to a situation where the first rule of economics—everything has an opportunity cost—comes into effect (4). Price ceilings on housing contribute to lower quality maintenance and living conditions as landlords may invest less in upkeep.
Step-by-step explanation:
The reason for residents not being able to afford the maintenance can be attributed to the government stopping its financial assistance. When the government initially pays for housing, it creates a situation where maintenance and other costs are subsidized. Once this support ends, residents are often left to cover the full cost of maintaining their homes on their own. Due to the first rule of economics, which states that you do not get something for nothing and that everything has an opportunity cost, these residents may find themselves unable to afford the maintenance costs without the government aid that made housing initially affordable.
Furthermore, when price ceilings are placed on rents to make housing affordable, it does not simply benefit renters at the landlords' expense. Instead, it may lead to landlords spending less on maintenance and essential services. Over time, this results in lower quality housing for the renters. Additionally, in periods of economic hardship, the working poor may struggle with other financial obligations, which can be exacerbated when governmental support is withdrawn, thus making maintenance expenses even more burdensome.