The real estate market is well developed and comprises a significant 34% of the $49.3 Trillion investable wealth in the United States. Real estate ownership is comprised primarily of residential and commercial properties, which comprise 19% and 9%, respectively, as shown on the graph below.

Investable wealth in the United States is $50 trillion

While the debt and equity markets are highly liquid, the real estate market is not. An increased liquidity in the real estate market would make the overall market more efficient. For example, a house is the primary investment asset for most families. The challenge for some property owners is to unlock the value of this asset without having to sell their home prematurely, or take out an expensive home equity loan. In addition, property owners are sensitive to price declines of their homes and stand to lose a large portion of their wealth when such price declines occur. On the other hand, investors are limited in ways they can invest in private real estate. For example, investments into mortgage backed securities offer a fixed return and do not benefit from real estate price volatility and price changes. Investors are exposed to the market risk which can be diversified with investment in real estate.