When transaction costs approach 1% of asset value, entirely new financial structures become viable. Property tokenization enables fractional ownership for ordinary investors. Secondary markets for property-based instruments emerge naturally. Dynamic mortgage products with instant refinancing capability become practical. These innovations multiply the economic utility of the $26.6 trillion US residential real estate market.

DeFi integration transforms real estate from an isolated asset class to composable financial building blocks. Properties serve as collateral for instant loans, generate yield through automated market making, and package into synthetic instruments. When property can be fractionalized, traded, and used as collateral with minimal friction, new business models emerge. Real estate investment becomes accessible to participants previously excluded by high minimum investments and transaction costs.

The combination of low transaction costs and programmable ownership creates conditions for financial innovation that were previously impossible. Collateralization opportunities expand credit access to previously excluded populations, reducing reliance on predatory lending while maintaining prudent risk management. Mathematical verification replaces institutional gatekeeping, enabling equal access regardless of location or connections.