The lack of inventory has caused real estate prices in the United States to skyrocket to all-time highs in recent years, causing many first-time buyers to shy away from the market, waiting for a sign of affordability to return.

The median home price in the United States is $400,000; However, for an average household it is a very high cost that they definitely cannot afford, so they lean towards other options such as rentals.

And while high real estate costs are expected to decline at some point, a recent Zillow analysis found that at least 242 cities across the country have homes for first-time buyers for up to $1 million.

In this regard, Kara Ng, senior economist at Zillow, commented that the Covid-19 pandemic redefined the cost of buying a home, expanding million-dollar homes for first-time buyers from a handful of coastal states to more than two dozen states across the country, she said in a statement.

Since then, according to the Zillow report, the number of basic homes in metropolitan areas valued at least seven figures has tripled and this was due to the shortage of properties due to high demand, coupled with lower mortgage interest rates.

The economist noted that luxury homes for first-time buyers are now emerging in more cities in the Northeast because the housing shortage in that region has not yet been resolved. "Sunbelt markets have responded with new supply and, as a result, price growth has moderated. The northeast has not had that relief."

While the average price of a typical home for first-time buyers still costs between $199,000 and $418,000, a Redfin analysis estimates that households would need an income of approximately $117,000, of which they should allocate 40% to the purchase of the home, although experts note that mortgage payments should not exceed 30% of annual income.