Housing is taking a large chunk of the Average American’s monthly bill as soaring house prices continue to outgrow income.
According to the U.S Bureau of Labour Statistics, it costs the average American household a little over $5,000 a month to keep the home running. Meanwhile, rent alone accounts for 34.4% of the total monthly spending!
The soaring house prices cost-burdening a vast number of Americans presents a typical housing problem that makes renting or owning a property in the US and in most countries very expensive.
They also point to the growing discrepancies between the income of the average citizen and the cost of housing in the US and in countries that are affected by the affordable housing crisis.
For America’s low-income individuals and families, the rising cost of housing means that getting by on a monthly basis is always tough, and money constraints requires cutting down spending on groceries to pay a monthly rent. The reality of this dire situation continues to put a spotlight on the need for a total of 7 million affordable homes across the country.
LEVERAGING A COST-EFFECTIVE SOLUTION
Today, around 11 million Americans spend more than half of their income on rent,which is why housing is affordable if the average American family or individual spends less on it. A recurring living expense, such as the outrageous cost of housing, calls for a cost effective solution that can help to reduce the monthly bill the average American pays to keep a roof over his head.
A Decentralised Autonomous Organisation(DAO)that is seeking to build affordable residential properties across the United States can offer a cost effective solution to the lingering global housing crisis for the following reasons:
- Better incentives
DAOs are an internet-native organisations with the capacity to incentivize a mass of people to join a cause. They offer their membership to the public through the deployment of their cheap and affordable ERC tokens. They can also guarantee a fast pace of mobilization and fundraising on open source platforms.
- Democratic Treasury
DAOs keep the records of their financial transactions open so everyone can have access to them, and in most cases trusted signatories, otherwise known as the multi-signers, are voted by the members of a DAO to uphold a threshold. A DAO’s treasury is usually transparent and well-secured, and the security risks from bad actors is either minimal or virtually non-existent.
- Policy Compliant
Wyoming-licenced DAOs are registered DAOs that are operating within the legal parameters of the law of the state of Wyoming. DAOs can have a verifiable ownership of a physical asset or property and the legal capacity to enter into a contractual relationship as registered legal entities. Exploring a DAO with such legal status offers more protection
- Social Outlook
All DAOs, if not most DAOs, have a social outlook in terms of the relationship that is fostered between the founders of the DAOs and their members. In other words, DAOs are built around the notion of a single community of people with a shared interest. They can host IRL events where their members get to socialise as a community.
The governance model of a DAO fosters participatory democracy through the ownership of its governance token. Owning a DAO’s token can guarantee the right to vote on the policies and proposals of the DAO, which in turn creates a bottom-up approach to governance.
HOW K.GROUP DAO FITS INTO THE PICTURE
Founded in September by Jermaine Anugwom, a senior asset manager, K.Group DAO is indubitably America’s first DAO to put its affordable housing problem on the front-burner. As an internet collective, its mission is to help low-income American families and individuals to gain access to shared living spaces.
K.Group DAO operates a housing model that allows it to acquire and convert residential properties into shared living spaces. In practice, it currently owns an exquisitely furnished residential property in Texas housing a maximum of twelve low-income Americans.
As a Wyoming-registered DAO, K.Group DAO has leverage to enter into a partnership with conventional organisations in the construction industry through its legal capacity. At the moment, it is partnering with Kiba Group Construction, which is one of America’s leading construction firms with over 12 years experience in affordable housing.
Capacity-building is K.Group DAO’s unrelenting effort to not only house and rehouse cost-burden Americans but also to provide housing for more than 10,000 migrant families along the Texas Border as well. Helping to solve America’s housing crisis promises to increase its chances of growing bigger as an internet collective in record time.
True to its democratic ideal as a DAO,the power to decide whether to pull equity from the property or refinance its construction projects ultimately resides in K.Group DAO’s autonomous community, mostly comprising of its token holders and core contributors.
There is a worsening housing crisis in the US and in many countries owing to a lack of affordable housing. A total of 7 million new homes are currently required to fill the demand for adequate housing across the country and a total of 96,000 homes will have to be built everyday for the next few years to solve the global housing crisis. But with its promise of a cost-effective solution, chances are that such DAO as the KGroup DAO can immensely help in solving the housing crisis.
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