Urban problems of drugs and housing worsened last year, according to a survey of city leaders released Thursday by the National League of Cities.

It said the supply of affordable housing is expected to be the major hindrance to local economic growth for cities.Alan Beals, executive director of the league, which represents large and small municipalities across the country, denounced President Reagan's proposed budget for fiscal 1990 as "out of touch with our nation's cities" and the needs reflected in the survey.

"We will urge President-elect Bush and his key domestic policy appointees to make revisions that will reflect some of the pledges made during the presidential campaign," he said.

The league released its annual survey of municipal officials at a news conference. It surveyed 690 officials in 473 communities last month.

It found two-thirds of the town officials reported local drug problems had worsened in 1988, and that crime was described as worsening by 45 percent.

"In the face of unrelenting drug trafficking and drug-related violence, the president wants to abolish funding for local drug assistance," Beals said.

Ranked second among worsening conditions was the affordability of housing including rental housing, and the related issue of homelessness. Forty percent of those surveyed said those conditions had worsened in their cities.

A majority, 51 percent, said the supply of affordable housing is inadequate for growth - ranking that problem ahead of roads, education and other issues.

Beals said Reagan's final budget proposal would eliminate local revenue bonds for housing, cut aid for the homeless in half, cut low-income energy assistance by one-quarter, and make reductions in spending for community development, rental rehabilitation and low-income housing assistance.

Those surveyed included officials from cities and towns of all sizes and regions.