A new calculator to help people decide which housing type to buy or rent in the US is to be launched by the American Association of Realtors.
It uses the median income of people aged 20-64 to calculate what it would cost them to live in the median house in California.
The calculator uses data from a new report by the think tank Demographia, which suggests median house prices are rising faster than the average wage growth rate of the past 20 years.
The report says median house values in the Bay Area have risen by more than 20 per cent since 2010, with the median price of a house in the city of Oakland rising nearly 40 per cent.
While median incomes in California have increased by more slowly than in most other states, the increase in median house price is more than double the national median income, according to the report.
It also found that median incomes were higher in the metropolitan area than in the surrounding suburbs, which has fuelled the housing bubble.
The AP said the calculator’s authors believe it will help people to decide which type of housing to buy in California, given the current housing affordability crisis.
The developers of the new calculator are calling it the Housing Affordability and Livability Index, or HALI.
The group behind the project said the HALi is based on the data from the US Census Bureau’s American Community Survey, which shows median household income growth over time.
It said it also uses data provided by the Bay area Assessor of Tax Appeals (ATTA) to determine the value of median homes.
“The calculator gives a very useful and easy to understand answer for the question of how much to spend on housing in the United States and around the world,” the developers said in a statement.
“It also offers a very quick and easy way to see what your income will be for a typical house price in your city or town.”
It said the developers would be working with the developers of other affordability tools, such as the Real Estate Dashboard, to create a more comprehensive and accurate measure of housing affordability.
The housing affordability problem has become increasingly pressing in the past two years as prices in some cities have soared, according the AP.
In April, US President Donald Trump signed an executive order that seeks to boost housing affordability and promote private investment.
In response, San Francisco and Oakland, which are both located in the nation’s most expensive Bay Area, announced plans to create housing zones that would make affordable housing easier for low-income people.
The California legislature recently approved $3.2bn in new funding for housing vouchers to help renters, with more than $1bn earmarked for the Bay region.