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. Collateralization opportunities expand credit access to previously excluded populations, reducing reliance on predatory lending while maintaining prudent risk management.