The term “company town” is usually associated with small rural communities where a single corporation plays a dominant role in its economy and social fabric. However, according to an article in The New York Times by Binyamin Appelbaum, the capital of the richest nation in history has become a prime example of this notion, particularly when it comes to the real estate industry. Appelbaum cited a study by the University of Maryland’s School of Public Policy that found that institutional owners represented 40% of the capital value of all property in Washington, DC, and 50% of its rental market. This concentration of power by a handful of large companies has resulted in skyrosing rents that are far beyond the reach of many low- and middle-income households, leading to social and economic disparity, emptier streets, and urban decay. The author suggested that addressing the issue would require a deliberate strategy that takes into account the unusual circumstances of the nation’s capital and looks beyond the traditional tools and approaches of zoning and subsidies.
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