Homes still too costly, despite slump: study

WASHINGTON (Reuters) - Home values have slid in many cities since the height of the recent housing boom but homes in many urban areas are still unaffordable for working people, according to a study released on Tuesday.

The study, commissioned by the Center for Housing Policy, finds that homeownership is out of reach in many metro areas for five of the highest-growth occupations in the country.

Specifically, registered nurses, retail salespersons, customer service representatives, food preparation workers and office clerks do not have the median annual income to afford their own home in most of the 201 metro regions studied.

"We hear a lot about the 'information economy,' but the fact is most working families are still employed in traditional service occupations," Jeffrey Lubell, executive director of the center, said in a statement. "In many metro areas, these families continue to face home prices and rents that are beyond their means."

Recently, some of the most expensive markets in California, Arizona, Florida and around Washington DC have seen an increase in affordability but those areas are still out of reach for many working people, the study finds.

One of the biggest causes of the affordability gap is a severe deficit of affordable housing stock, said Barbara Lipman, research director for the Center.

"The solution is going to be increasing the supply of homes," she said. "We have been moving sideways for a couple of years in terms of available affordable housing. We have barely replaced the stock of available homes for years now."

(Reporting by Patrick Rucker; Editing by Chizu Nomiyama)