U.S. home prices may have dipped over the past year, but many American workers would still struggle to afford a median-priced home in major cities, a new study said Wednesday. “American workers are really not gaining ground and they’re so far behind in the first place,” said Barbara Lipman, research director for the nonprofit Center for Housing Policy, which conducted the study. While the median home price in the 202 largest metropolitan areas declined 2 percent from a year ago to $248,000 in the third quarter of 2006, mortgage rates rose enough over the year that homes actually became less affordable as pay did not keep pace.

Other ways families cope with high housing expenses is to work longer hours or extra jobs, or by crowding in more income producers, she said. An October 2006 survey by the group found families who seek to buy less-expensive homes in further-out suburbs - adding to urban sprawl - pay so much more for transit that it eliminates the savings. While home prices range widely across the country, wages for low-wage jobs - from teachers to janitors - are about the same no matter where they are located, Lipman said. The report cited housing aid programs offered by some big-city hospitals that have plenty of modestly-paid workers.

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