That bike has probably been through a couplafew owners before ending up as someone's hobo beer bike. I hardly ever see drop bars flipped up party style like that anymore, in my neighborhood. Most folks who need bikes for transportation, but don't self-identify as "cyclists", have gone to hybrids or mountain bikes, usually terrible examples of those genres, with flat or riser bars and questionable brakes.
It might have been stolen at some point but not necessarily by the most recent owner. Some folks just abandon bikes when they move or are evicted. The 2008 economic collapse devastated some areas, and some communities within otherwise thriving cities. My neighborhood is one of those. Lots of beater bikes, usually available cheaply from the many nearby pawn and thrift stores, or frequent neighborhood garage/yard sales.
The only good bike I've seen in my area in years was a nice Kona Lava Dome at a nearby pawn shop. They wanted over $300 for it back in February. I passed but someone bought it -- that Kona was gone when I stopped at that pawn shop a couple of weeks ago to buy some tools. Most of their bikes are Huffy class or worse, usually under $100.