A new report from Redfin sheds light on rental affordability for the nation’s retail workers. A typical retail worker earns $34,436 annually—51.6% less than they would need to afford a typical apartment, according to a new report from Redfin.
While Redfin notes affordability has improved slightly in recent years, a renter would need to earn $71,172 to afford the typical apartment, which costs $1,779 per month. If a typical retail worker wanted to afford a typical apartment on their own, they would need to work 83 hours per week.
“As the cost of living has increased, so have the sacrifices renters must make to afford a place to live,” said chief economist Daryl Fairweather. “Since most retail workers don’t earn enough to afford the typical apartment, many are opting to share rent with a family member or friend, move far away from their job, or live in a very small place. The good news is rents are no longer rising as fast as they were during the pandemic, so rental affordability has actually improved slightly in recent years.”
According to Redfin, the retail industry has been hit hard by layoffs, with retailers eliminating jobs due to tariffs, falling sales, and the impact of artificial intelligence. Seasonal hiring also is expected to fall to its lowest level in 15 years.
While the report analyzes typical retail workers and typical apartments, Redfin notes many retail workers don’t seek out a typical apartment because it’s out of their price range. Findings showed affordability is still strained for retail workers with higher wages. Those with wages in the top 25% still earn 44.2% less than they would need to afford the typical apartment.
Affordability has improved slightly because wages have been growing faster than rents—around 3% versus closer to 2%, respectively.
The smallest earnings shortfall for retail workers is in Cleveland, where the typical worker earns 32.9% less than they would need to afford a typical apartment. The markets that follow with the smallest shortfalls—St. Louis; San Antonio; Kansas City, Missouri; and Milwaukee—are all metros with lower average rents.
New York has the largest earnings shortfall, with typical retail workers earning 71% less than they would need to afford a typical apartment, followed by the higher-rent metros of Boston; San Jose, California; Miami; and San Diego.