While housing is a fundamental human necessity that will never go out of style, the industry that surrounds it has experienced its share of ups and downs. Despite the worldwide pandemic, the global housing sector was in a downturn towards the end of the 2000s as a result of the economic crisis, and the US housing grew in value by $2.5 trillion in 2020. Without a question, the property market is one of the most complicated in the world.
The housing market, in particular, has a turbulent connection with the younger generation. Due to growing housing costs and inflation, many people will never be able to own a home in the manner in which their parents did, much alone benefit from the real estate market.
Increasing living costs, inflation, and less socioeconomic mobility all imply that millennials will be unable to participate in the housing market in the same manner that their parents did, and if this trend continues, the market might collapse within a few decades. The housing market, like other industries with low millennial involvement, such as the diamond industry, may be pushed to adapt over time, or else face a slew of unsold properties across the board.
This is an issue for younger generations, but it's hardly exclusive to them; the housing market is known for excluding people based on their salary, credit score, and other criteria. There have been gatekeepers in the business for a long time, who often deny individuals the opportunity to acquire property or to generate income via investments.
How Blockchain is Bridging the Generational Gap
This issue of certain individuals being excluded from the real estate market may be addressed through the use of blockchain technology, one of the most innovative and cutting-edge technical approaches accessible. Real estate tokenization is particularly beneficial to people who are financially disadvantaged since it gives them a chance to invest in and profit from the real estate market.
The process of tokenization involves the division and sale of ownership of an asset into smaller parts, similar to the division of and sale of shares in a business. This implies that anybody may invest in a piece of a luxury high-rise or apartment complex and generate passive income as a result of their investment.
This has been going on for a few years, and if the trend continues, it might pave the way for the industry's future. Gatekeepers will no longer be able to keep people out, and there will be fewer high barriers to entry. The tokenization of the real estate market would assist the democratization of the real estate market in the same manner that bitcoin has allowed people to build up investment portfolios with pennies.
There are additional advantages for developers, as smaller investors can enter the picture instead of searching for single individuals to invest significant sums in projects.
As a result, everyone will benefit from a more equal and accessible real estate market.