When I moved to Berkeley in 1973, I spent some time looking for an apartment to rent near the campus. Every single one in my price range had defects ... carpeting in shreds, broken elevators, broken appliances, cracked windows, unclean, and so on. It seemed to be understood that since there were not too many available apartments, that some poor soul would be desparate and sign a lease.
I ended up finding one nearby in Oakland.
The first time I moved to NYC in 1980 or so, it was the same thing. People would rent apartments and then spend a couple of thousand dollars of their own money on painting, carpeting, new appliances, and other general maintenance items. It seemed to be just the way the market had evolved, but really it was rent control. If you had rich parents, you could find a deal and remodel it. If not, you downsized ... and ended up living in a tiny apartment for the next twenty years, because in the inflationary environment, you would build a sort of equity by having a below-market rent ... and would lose to your "investment" by moving.