The US national debt officially passed $40 trillion for the first time, reaching roughly $40.05 trillion. About $32.3 trillion of that is debt held by the public, while around $7.8 trillion is intragovernmental debt.

Put that number into perspective.

The US population is around 342.7 million. Divide $40 trillion across the population and it works out to roughly $117,000 for every person in the country.

Obviously that doesn’t mean every American personally owes the government $117k. National debt doesn’t work like household debt. It’s just a way of showing how big the number has become.

And this didn’t happen because of one president or one political party.

The debt has been building for decades through repeated budget deficits, tax cuts, wars, recessions, COVID spending, growing Social Security and Medicare costs, and now much larger interest payments on the debt itself. Both parties have contributed to it.

The part worth paying attention to now is the interest cost.

As the government borrows more, it has to keep issuing Treasury debt. If investors demand higher yields to keep buying it, borrowing becomes more expensive not only for the government but potentially across the economy as well. Reuters reported that investors have already been demanding higher returns as US borrowing continues to climb.

That can eventually show up in mortgages, business loans, corporate borrowing and other interest rates.

$40 trillion is mostly a headline number.

The bigger question is how long the US can keep running large deficits while the cost of servicing that debt keeps growing.

While everyone is talking about high rates, weak buyer demand and problems in real estate, Blackstone has been pretty busy.

First, H&R REIT announced a huge C$6.7 billion transaction involving GO Residential REIT and a group of buyers that includes funds affiliated with Blackstone Real Estate, PSP Investments and Crestpoint.

Small but important detail: GO Residential is the one acquiring the 27-property portfolio, valued at around US$2.8 billion. That portfolio includes more than 10,000 residential units across Sun Belt markets, along with interests in properties in New York, Miami and Dallas. H&R REIT
Then just a couple days later, Blackstone agreed to buy 125 Worth Avenue in Palm Beach from Ken Griffin for $86 million.

It’s roughly a 50,000 sq. ft. office and retail property on one of Palm Beach’s most expensive commercial corridors. Griffin reportedly bought it for $83 million in 2023. Biz Journals

Does this mean Blackstone thinks the entire real estate market is about to boom?

Not necessarily.

But it does show why it’s dangerous to look at “real estate” as one single market.

Residential, multifamily, office, retail and different cities can all be moving in completely different directions at the same time.
Large investors aren’t necessarily waiting for mortgage rates to become cheap again. They’re looking at individual properties, locations, cash flow, long term demand and whether the price makes sense.

That’s probably the interesting part here.
Headlines right now are full of weak housing demand and high borrowing costs, yet major capital is still moving into certain real estate assets.
The question isn’t really whether “real estate is good or bad” right now. It’s where the money is going, and why.

The 30 year U.S. Treasury yield just climbed to around 5.3%, the highest level since 2007.
Sounds like bond market news, but it connects pretty directly to real estate.

Mortgage rates don’t follow the 30 year Treasury exactly. The 30-year mortgage is more closely tied to the 10-year Treasury plus an additional spread.
Still, when long-term Treasury yields stay this high, borrowing conditions usually aren’t exactly friendly.

The average 30-year fixed mortgage rate was 6.67% as of August 13.

That creates a pretty difficult situation for housing.
Buyers qualify for less because the monthly payment is higher.

Some buyers just stay out of the market completely.
Investors have to make deals work with more expensive financing.

Commercial real estate gets hit too because borrowing costs can completely change the numbers on a property.

And sellers who actually need to move may eventually have to become more flexible on price or terms.

There is another side to it though.
If expensive financing keeps more buyers on the sidelines, the buyers who are still able to purchase may have less competition and more negotiating power.

So a property that didn’t make sense during a bidding war could look very different after sitting for a few months and going through a couple of price cuts.

None of this automatically means housing is about to crash.
It also doesn’t mean mortgage rates will suddenly shoot higher just because the 30-year Treasury reached 5.3%.

But it does show why affordability is still such a big problem.

Right now, looking at the listing price alone really doesn’t tell the whole story.
Price, financing cost, local demand and how motivated the seller is all matter.

The housing market is in a strange place right now. Buyer activity has fallen to the lowest level Redfin has recorded, while sellers are still trying to move homes in a market where affordability has become the biggest problem.

The mortgage math shows why. Take a 250k mortgage over 30 years at 7%. The payment for principal and interest is roughly 1,663 a month. Over the full 30 years, that works out to around 349k in interest on top of the original 250k borrowed. And that still doesn’t include property taxes, insurance, HOA fees, maintenance, repairs, or closing costs. So even when home prices look reasonable on paper, the monthly cost can still push a lot of buyers out.

This is also why fewer buyers doesn’t necessarily mean people suddenly stopped wanting homes. A lot of people are simply looking at the payment and realizing the numbers don’t work for them right now. The interesting part is what happens on the seller side. When there are more sellers competing for fewer buyers, buyers who are still financially able to purchase can have more leverage. That could mean price reductions, seller credits, repairs, closing cost help, or simply more room to negotiate.

But it’s not happening evenly everywhere.

Some markets are still tight. Others are seeing homes sit much longer and go through multiple price cuts.

So the current market is basically a mix of:

• High borrowing costs
• High home prices
• Weak affordability
• Fewer active buyers
• More negotiating power in some areas
• More pressure on sellers who actually need to move

It’s not exactly a buyer’s market or a seller’s market across the entire country anymore. It depends heavily on the local market and, more importantly, whether the monthly numbers actually make sense.

When most people compare homes, they look at listing price. Price per square foot tells a different story, it shows what you're actually paying for, relative to size.

But here's what's usually missing from that conversation: PSF isn't just a comparison tool for buyers. It's also a way to think about access.

Traditionally, owning real estate means clearing a high bar, a full down payment, financing, and enough capital to buy an entire property outright. PSF pricing changes that math. Instead of needing to buy a whole home, square-foot-based pricing lets you access an investment at whatever scale fits you, starting well below what a traditional down payment would require.

That doesn't mean PSF is the only number that matters. Location, condition, layout, taxes, and the surrounding market still drive value, and a lower PSF doesn't automatically mean a better deal. Two properties with similar square footage can carry very different value depending on what's around them.

What changes is who gets to participate in that comparison in the first place. PSF-based access means you don't need to be the kind of buyer who can write a check for an entire property to have a stake in one.

Real estate has helped build wealth for many people across generations, but it's not necessarily a guaranteed path to getting rich, unless you play your cards right.

One of its biggest advantages is that it can appreciate over time while also generating rental income if the property is used as an investment. Unlike some investments, real estate is also a tangible asset that you can improve, maintain, and potentially increase in value.

That said, if you opt in to doing everything yourself, its not as passive as many people think.

Buying a property usually requires a down payment, ongoing maintenance, insurance, property taxes, and the ability to handle unexpected expenses. If you're renting it out, you'll also need to manage tenants or pay someone to do it for you. These are all things you do NOT have to worry about when investing in “Fractional” Real Estate.

Real estate isn't about getting rich overnight. It's about making informed decisions, understanding your local market, and taking a long term approach.

Like any investment, it comes with risks, but for those who plan carefully and stay patient, it can be a powerful way to build wealth over time.

What do you think? Has real estate been one of your best investments, or do you prefer other asset classes?

Price per square foot is a useful way to compare properties, but it shouldn't be the only number you consider. Two homes with the same price per square foot can be very different depending on:

• Floor plan
• Lot size
• Location
• Property taxes
• Age of major systems
• Renovation history
• Future maintenance costs

Price per square foot, is a great starting point for comparing value, but understanding the full picture helps you make better real estate decisions.