Struggling to Make Ends Meet: The Harsh Reality of Retail Workers Facing an Affordable Housing Crisis

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As the holiday shopping season approaches, Americans are poised to indulge in a shopping frenzy, yet many retail employees find themselves grappling with the harsh reality of unaffordable housing. While consumers are set to spend generously, those behind the cash registers and store aisles face a different story.

According to a recent analysis by Redfin, the average retail worker earns a modest $34,436 annually. This figure falls significantly short of the approximately $71,000 needed to comfortably afford the rent for a typical apartment. This stark disparity highlights the financial challenges faced by those in the retail sector.

In practical terms, a retail worker would need to clock around 83 hours each week just to manage the current average rent of $1,779 while keeping housing expenses within 30% of their income, the standard threshold for affordability.

Daryl Fairweather, Redfin’s chief economist, elaborates on the situation, noting that many retail workers are resorting to alternative living arrangements. “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 space,” Fairweather explained in the report.

This growing divide is further exacerbated in rural areas, where home prices are climbing swiftly, yet local incomes lag behind, intensifying the financial strain on those who can least afford it. As the festive season unfolds, it’s crucial to acknowledge the economic hurdles faced by the very individuals who help make holiday shopping possible.

Retail workers in New York City fall nearly $96,000 short of the income needed to afford the typical apartment — a 71% shortfall and the largest among the 50 metros Redfin analyzed.

In Boston, renters need to make nearly $115,000 a year to afford the typical apartment, more than $76,000 above retail workers’ annual wages in the area.

San Jose, Miami and San Diego also had some of the largest gaps between retail wages and rents.

By contrast, Cleveland, St. Louis and San Antonio had the smallest shortfalls. But none of the 50 metros Redfin analyzed were affordable for retail workers under the 30% rent-to-income standard.

Even high-earning retail workers, those in the top 25% of wages, still earn 44% less than they would need for the typical apartment.

Redfin’s findings underscore the financial strain many retail workers are facing, and a weaker holiday hiring season has only deepened concerns.

Retailers are expected to hire between 265,000 and 365,000 seasonal workers this year, possibly the lowest level in over 15 years, according to the National Retail Federation. The downtick is a reflection of growing online sales, a softening economy and a slower labor market.

Still, the NRF sees holiday sales exceeding $1 trillion for the first time.

While rents are still out of reach for many, affordability has modestly improved recently. Retail worker wages have been growing at a pace of around 3% year over year, and rents have been growing at a rate closer to 2%, Redfin said.

Today’s 52% gap between retail wages and rent is slightly better than the 57% shortfall in October 2022.

Redfin said rent growth has slowed due to an apartment construction boom during the pandemic, which gave landlords less leeway to raise rents.