Retail Workers Face Significant Housing Affordability Challenges, Reports Redfin

In a revealing report released by Redfin, a technology-driven real estate brokerage under the Rocket Companies umbrella, the financial plight of the typical retail worker in America has come to light. The study highlights that the average retail worker earns approximately $34,436 annually, which is a staggering 51.6% below the income needed to afford a typical apartment in the current market. With the average monthly rent pegged at $1,779, renters must earn around $71,172 a year to meet this basic housing expense.

Redfin's analysis indicates that the affordability crisis is forcing many retail workers to make tough decisions regarding their living situations. Chief Economist Daryl Fairweather commented, "As the cost of living has increased, so have the sacrifices renters must make to afford a place to live." With a significant earnings shortfall of $36,736, many retail workers are opting to share accommodations, relocate further from their jobs, or settle for smaller living spaces.

The report also notes an improvement in rental affordability compared to previous years; however, the situation remains dire. The percentage of income that retail workers can allocate to rent is still a significant concern, with many unable to find housing within their means.

A Redfin-commissioned survey conducted by Ipsos in May 2025 revealed that nearly 23% of U.S. renters experience regular or severe difficulty in affording housing costs. Among those who relocated within the past year, another 23% did so primarily to find more affordable housing options. Renters are increasingly cutting back on discretionary spending, with many dining out less frequently, vacationing less, and borrowing money from family and friends to manage their rent obligations.

The retail sector has faced substantial job losses, with 88,664 layoffs reported in 2025, marking an alarming 145% rise from the previous year. Factors contributing to this trend include declining sales, rising tariffs, and the growing influence of artificial intelligence on the workforce. Seasonal retail hiring is also projected to drop to its lowest levels in 15 years, with the National Retail Federation estimating that only 265,000 to 365,000 seasonal positions will be filled this year, down from 442,000 in 2024.

Despite the ongoing challenges, there is a slight improvement in rental affordability for retail workers. The current shortfall of 51.6% is an improvement from the 52.2% recorded in October 2024 and the 56.8% shortfall noted in October 2022. This positive trend can be attributed to wage growth outpacing rent increases, with retail worker wages climbing by approximately 3% year-over-year, while rents have only grown by about 2%.

The report also explored regional variations in rental affordability, revealing significant disparities across metropolitan areas. For instance, retail workers in Cleveland experience the smallest shortfall at 32.9%, while those in New York face the largest gap, earning 71% less than needed to afford a typical apartment. Other cities with notable affordability challenges include Boston (66.5%), San Jose (65.7%), Miami (65.2%), and San Diego (64.6%).

The findings from Redfin underscore the ongoing housing affordability crisis faced by retail workers across the United States. While there are indicators of slight improvements, the reality remains that many are struggling to secure adequate housing within their financial means. As the retail industry navigates economic challenges, it is crucial for policymakers and stakeholders to prioritize solutions that can enhance housing accessibility for this vulnerable workforce.