Housing crisis

How a Wyoming-Registered DAO is Solving America’s Affordable Housing Crisis

Buying and converting residential properties into shared living spaces is the starting point for K.Group DAO, a Wyoming licensed DAO. But its underlying philosophy is to bridge the gap between income and the cost of housing for America’s low-income families and individuals.

As of this writing, a total of twelve people currently occupy a lightly furnished property owned by K.Group DAO LLC in Texas, each enjoying the comforts of a new home.

That number is expected to reach 600-700 in three months as K.Group DAO prepares to launch a funding round on JuiceBox, the Ethereum fundraising platform where Assange DAO funded $50 million in February.

© K.Group DAO

As a registered collective, the properties acquired by K.Group DAO are held in trust, and the power to decide whether to distribute the profits generated by the lease or to refinance its construction projects ultimately lies with its autonomous community, made up of its holders. of tokens and its main contributors. .

With no guaranteed profits or incentives, K.Group DAO identifies itself more as another social project than a web3 investment vehicle, with real value and potential to transform the traditional real estate landscape in the United States and beyond. of the.

The housing crisis in the United States

The United States has faced a housing shortage since the economic downturn of 2008, and it currently needs 6.2 million homes to solve this problem. Today, the gap between the average American’s income and the cost of housing is also widening, with no signs of a near-term decline.

According to the World Economic Forum, about 11 million Americans are spending more than half of their income on rent due to soaring house prices.

How a Wyoming-Registered DAO is Solving America's Affordable Housing Crisis
© National Alliance to End Homelessness

As a result, America’s overpriced population, made up of people without the financial means to buy or rent property, is growing every year at an alarming rate and the plight of half a million homeless Americans is the most shameful thing. have.

K.Group DAO housing model

The problems posed by the housing crisis in the United States come in the form of housing shortages and homelessness. But the key point about this is that the demand for affordable housing across the country is outstripping the supply.

To stop this dangerous trend, it seems viable to go down the road of building new homes in an effort to reduce the cost-burdened US population. However, well-coordinated funding and capital management that the K.Group DAO leverage on blockchain technology promises to achieve can yield better results.

As the DAO, it will “extend the use” of capital to build multi-room accommodation for each property so that between 8 and 12 people can share a single spacious property at a time. This housing model contrasts sharply with the traditional housing model in which a residential house is normally occupied by a single family.

Global housing crisis, myth or reality?

The reality of a global housing crisis is that in most countries rents have risen faster than incomes. It is also backed up by World Bank data showing that around 1.6 billion people will be affected by the global housing shortage by 2025.

According to UN-Habitat, solving the global housing problem requires the construction of 96,000 new affordable homes every day for the next few years to meet the basic housing needs of those likely to be affected.

How a Wyoming-Registered DAO is Solving America's Affordable Housing Crisis

In a world where 3 billion people are expected, according to UN-Habitat, to face a global housing shortage by 2030, a cost-effective solution such as a DAO can also help solve the crisis outside the framework or the traditional institution.

Written by Olayimika Oyebanji