Final answer:
Condos can prevent purchases through their bylaws and approval processes. Price ceilings may compel landlords to convert rental units into condos, thus reducing the available housing for rent and imposing the cost of reduced availability on potential renters. Additionally, lower rental prices from price ceilings often result in lower quality housing.
Step-by-step explanation:
The question addresses how a condominium (condo) can prevent someone from buying an apartment within its building. Condos can enforce such restrictions through their bylaws and approval processes. When an apartment is converted into a condo, the ownership structure changes, and the condo association gains the power to approve or reject potential buyers based on a set of criteria. These criteria may include financial stability, background checks, and adherence to community rules.
Moreover, price ceilings, such as rent control policies, can lead to unintended consequences. Landlords may convert their rental units into condos as a response to rent caps, thereby reducing the rental housing supply. This conversion can prevent access to housing for some renters or potential renters, as the units are no longer available for rent but are offered for sale instead.
The economics principle of opportunity cost suggests that there is a cost to every benefit. In the context of housing, if renters are provided with below-market-rate housing due to price controls, they often end up with lower quality housing, as landlords may invest less in maintenance and amenities. Likewise, potential renters face the cost of reduced availability of rental units due to the conversion of apartments into condos.