Redfin Reports Typical Retail Worker Earns $37,000 Less Than Needed to Afford Typical Apartment

Core Insights - The typical retail worker in the U.S. earns $34,436 annually, which is 51.6% less than the $71,172 needed to afford a typical apartment costing $1,779 per month [2][8] - Rental affordability for retail workers has improved slightly in recent years, with the earnings shortfall decreasing from 56.8% in October 2022 to 51.6% in the latest report [8][10] - The report highlights significant regional disparities, with New York having the largest shortfall at 71%, while Cleveland has the smallest at 32.9% [11][13] Earnings and Affordability - A retail worker would need to work 83 hours per week to afford a typical apartment on their own, which is impractical for most [4] - Redfin defines rental affordability as spending no more than 30% of income on rent, based on wage estimates from the U.S. Bureau of Labor Statistics [3] Impact of Economic Conditions - The retail industry has faced significant job cuts, with 88,664 layoffs in 2025, a 145% increase from the previous year, attributed to falling sales and rising tariffs [6] - Seasonal hiring in retail is expected to decline, with projections of 265,000 to 365,000 seasonal workers in 2025, down from 442,000 the previous year [6] Behavioral Changes Among Renters - Nearly 1 in 4 U.S. renters struggle to afford housing costs, leading many to share rent, move further from work, or live in smaller spaces [5] - Renters are making lifestyle sacrifices, such as dining out less and borrowing money to meet rent obligations [5] Wage Growth vs. Rent Growth - Retail worker wages have been growing at approximately 3% year over year, while rents have increased at a rate closer to 2%, contributing to improved affordability [10] - The analysis indicates that even higher-earning retail workers (top 25%) still face affordability challenges, earning 44.2% less than needed for a typical apartment [7]