Web3 solutions aim to make America’s real estate market more accessible

cointelegraph.com:

America’s housing market may soon be facing its next bubble as home prices across the country continue to be fueled by demand, speculation and lavish spending that could result in a collapse. Moreover, many homeowners are opting to stay put due to climbing mortgage rates, creating a housing shortage. 

Data from the Federal National Mortgage Association, commonly known as Fannie Mae, found that 92% of homeowners think their current home is affordable. Yet, findings further show that 69% of the general population, consisting of both homeowners and renters, believe it’s becoming too difficult to find affordable housing.

While the fate of the United States housing market remains unclear, the rise of Web3 business models based around nonfungible tokens (NFTs), blockchain technology and cryptocurrency aim to solve many of the problems currently plaguing America’s trillion-dollar real estate market.

Jerry Chu, CEO of tokenization platform Lofty AI, told Cointelegraph that although real estate is one of the best asset classes for wealth creation across the globe, most people can’t access it due to three main reasons:

In order to make real estate attainable for the masses, Chu decided to create a platform that could fractionalize properties. Known as Lofty AI, Chu explained that the platform is built on the Algorand blockchain and consists of various turnkey rental properties that multiple investors can fractionally purchase for as little as $50. “You can think of every property as its own mini blockchain on the Algorand network. Assets, or unique tokens, are created for every property listed. The token supply is different depending on how expensive the properties are,” said Chu.

While the concept of tokenizing real estate has become