The Potential Role of Tokenization In Affordable Housing

Jan 02, 2019

Adequate access to affordable housing is a worldwide challenge. Rising costs of key inputs (i.e. land and building materials), widening income gaps and urbanization combine to create a stubborn headwind against which it is difficult to make progress. Simply stated, the number of lower income households is growing, but the quantity of affordable housing is not keeping pace in most parts of the world.  A wide variety of solutions have been implemented across the globe, but they all share one thing in common – they each rely on some combination of government incentives or mandates.

In a recently released whitepaper “The Potential Role of Tokenization in Affordable Housing”, CPROP co-founder Sandy Selman summarizes the state of the affordable housing sector in the US, Europe and Asia while making the case that tokenization can serve as a powerful private sector-led initiative to complement existing government-led programs to create capital market efficiencies and expand the potential pool of capital available to finance affordable housing.  Tokenization also offers the unique opportunity to create behavioral incentives for occupiers (e.g. timely payment of rent and utilities, reduced utility consumption, etc.) that generate financial benefits for property owners as well as the tenants themselves.

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