For centuries home and land ownership has been a top priority for individuals.

When home and land ownership first evolved it was a distant dream for many, as the rulers or kings/queens of the countries owned most of it, with the general population paying rent.

Home ownership has evolved to allow the general population to not only buy homes for their families but to be able to buy and rent it out for profits. Debt or mortgages also evolved as an instrument to allow the everyday citizen to purchase property.

But, have we gone back to property only being available to the ultra wealthy?

We are entering an era in which property ownership is a distant dream for many. To put it into perspective it takes the average earner in the UK 30 years to save for a deposit for a house in London. That’s up 650% since the mid 1990s!

In this article we will dive into the current state of home ownership, the effects it is having on allowing the everyday person to gain wealth, and why tokenization may be the answer.

The State of Home Ownership

The American Dream or British ideal of owning your own home – these aspirations feel increasingly like faded photographs in the face of today's housing reality. For many, especially younger generations, the climb to the property ladder feels more like scaling Mount Everest in flip flops.

Imagine this. Over the past 20 years, the median price of a house in the US increased by 143% (FRB), and in the UK, it shot up a not so modest 198% (ONS). That's like your favourite cup of coffee suddenly costing four times what it did back in the day – except this caffeine fix comes with a hefty mortgage hangover.

Now imagine the bank charging you extra interest every time you took a sip. That's what's happening with mortgage rates. In the US, they've jumped from ~5% to 6.7% (FRB), translating to a bigger chunk of your paycheck disappearing into paying off loans. The UK isn't far behind, with base rates quadrupling in just a year, making mortgages even more expensive.

Meanwhile, wages have struggled to keep pace. In the US, real wages have only risen by 7.4% over two decades (Source), barely a dent in the face of surging housing costs. The UK picture isn't much brighter, with wage growth failing to keep up with inflation and leaving housing affordability in dire straits. The consequences of this affordability crisis are stark. Renting has become the norm for many, especially younger generations, who find themselves stuck to landlords instead of building equity. Others remain rooted in their childhood homes, the "boomerang kids" of a generation locked out of the housing market.

This is not just an economic issue; it's a social one. Homeownership has long been a symbol of stability, security, and a stake in the community. The erosion of this dream has profound implications for wealth creation, social mobility, and the very fabric of our societies.

The Wealth Gap

Homeownership has long been a cornerstone of wealth building, offering a path to financial freedom through passive income. However, the current housing market dynamics are changing this, contributing to a widening wealth gap.

For many high net worth individuals, real estate remains a preferred investment, with 86% of them globally owning property (Credit Suisse). In contrast, the average homeowner's struggle is starkly different. In the US, while homeowners have a median net worth of $231,400, renters lag behind at $97,400 (FDR). This disparity is not just a matter of property ownership but a reflection of the growing wealth gap. The richest 1% in America now control over 30% of the nation's wealth, while the bottom 50% hold barely 1% (FDR).

The dream of homeownership and its associated financial security is slipping away for many. The percentage of renters in the US has steadily increased, reaching 37% in 2022 (JCHS). This shift is partly due to the skyrocketing property prices and stagnant wages, making saving for a deposit increasingly challenging. Consequently, adults are either staying longer with their parents or are forced into long-term renting, unable to accumulate wealth through property.

In response to these challenges, individuals are turning to alternative investment avenues like Real Estate Investment Trusts (REITs). The global REIT market has shown remarkable growth, the GDP of REIT countries and regions has increased from $6.5 billion in 1990 to almost $98 trillion in 2021 (Nareit). REITs offer a more accessible route to invest in real estate, allowing individuals to earn dividends from property investments without the hefty price tag of direct ownership.

Is Tokenized Real Estate the Future?

Tokenized real estate is revolutionising property investment, making it more accessible and efficient. This approach transforms property ownership into digital tokens on a blockchain, representing shares in real estate assets. Unlike traditional real estate investing, which often involves high entry costs and limited liquidity, tokenization lowers the entry barrier and enhances liquidity, similar to stock trading.

There is already a demand for fractional real estate, with platforms like RealT and Arrived enabling investors to trade property shares as tokens, providing liquidity in traditional real estate. This innovation is crucial, considering real estate's valuation at approximately $228 trillion globally (Token City).

The market potential is vast, with real estate tokenization projected to reach $18 billion by 2032. As adoption accelerates, blockchain and crypto innovations will redefine property investing and ownership.

At 0xprop, we enable everyday investors to achieve financial freedom through tokenized property. Our first asset, Loft D in Bali, lets buyers own a share of a high-yield vacation rental managed completely on their behalf. Loft D is generating 8-12% projected rental returns in the heart of a thriving tourism market. 0xprop handles all legal, sales, operational, and exit processes, making international investment seamless.

Tokenized models like this democratise access to prime assets and income streams once reserved for institutions. No longer is real estate confined by geography and capital constraints. Blockchain propels it into an open, empowering investment class.

Conclusion

The data paints a sobering picture - homeownership is increasingly out of reach for many as housing costs far outpace incomes. This props up systemic inequality, with wealth concentrating among those who already own assets while younger generations struggle.

Tokenized real estate offers a ray of hope. By converting properties into digital assets on blockchain, tokenization opens investment access through fractional ownership. Liquidity and transparency replace red tape and opacity.

Providers like 0xprop make global real estate investing possible from your laptop. Our inaugural Loft D property in Bali generates double-digit projected returns through blockchain-managed vacation rentals.

The market potential for asset tokenization is enormous - potentially $16 trillion by 2030 according to BCG. The future promises open opportunities for all to build wealth, not just institutions.

If you share our vision for transparent, empowering models that bridge the wealth gap, join the movement today and follow us on social media! The world moves fast - investing should too. ⏩

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