Final answer:
Price ceilings, such as rent control, have mixed effects. They can lead to lower rents for some tenants but also result in fewer rentals and less maintenance, impacting the quality of housing. Meanwhile, property owners facing rent caps might convert rentals to co-ops or condos, which could sidestep price limits.
Step-by-step explanation:
The change that occurred in 2018 regarding price ceilings such as rent control does not simply benefit tenants without any downsides. Landlords, facing limited income potential from these units, might choose to convert apartments to co-ops and condos, leaving some potential renters without housing options. Additionally, those renters who do find housing under such price controls may face decreased housing quality as landlords tend to invest less in maintenance and essentials like heating and cooling, due to the reduced revenue from their properties. Whereas tenants might benefit from lower upfront rental costs, they would potentially experience a decrease in living conditions. The property owner, on the other hand, may benefit from converting rental units into co-ops or condos, potentially bypassing the price ceilings and possibly generating higher income in the long run. It is crucial to understand that while price controls appear to provide a short-term financial benefit to tenants, the broader economic principle of opportunity cost comes into play, indicating that the long-term effects might negate these immediate savings.