Retail Workers Currently Earning 51.6 Percent Less Than Needed to Afford Rent: Report

Retailers have announced 88,664 job cuts through October, a 145 percent jump compared to the same period last year.

A rent sign seen in Maryland on Nov. 12, 2023. Madalina Vasiliu/The Epoch Times

A U.S. retail worker earns 51.6 percent less than the amount required to afford a typical rental apartment, real estate brokerage Redfin said in a statement released on Nov. 26.

“The typical retail worker in America earns $34,436 per year,” the company stated.

“A renter would need to earn $71,172 to afford the typical apartment, which costs $1,779 per month.”

This signifies a shortfall of $36,736 needed to afford an apartment, even though overall affordability has improved slightly in recent years.

In Cleveland, a typical retail worker earns 32.9 percent less than needed to afford a residence, the smallest shortfall among 40 metropolitan areas analyzed by the brokerage. This was followed by St. Louis, San Antonio, Kansas City, and Milwaukee. These places have some of the lowest rents in the country.

In contrast, the shortfall was highest in New York, where a retail worker earned 71 percent less. This was followed by Boston, San Jose, Miami, and San Diego. These locations rank among the most expensive rental locations.

Besides the rent struggle, the U.S. retail sector is also seeing large layoffs.

Retailers have announced 88,664 job cuts through October, a 145 percent jump compared to the same period last year, according to a Nov. 6 report by outplacement company Challenger, Gray & Christmas.

Incomes and Rent Growth

“As the cost of living has increased, so have the sacrifices renters must make to afford a place to live,” Redfin Chief Economist Daryl Fairweather said.

“[However,] 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.”

The average rent in a primary city residence grew by almost 3.4 percent between September 2024 and 2025, according to data from the Federal Reserve Bank of St. Louis.

A Nov. 19 report from real estate marketplace Zillow noted that U.S. incomes grew faster than asking rents this year amid a general slowdown in rent growth.

“Affordability is improving most significantly in markets where rents have fallen from year-ago levels, including Austin (where the typical asking rent is down 3.1 percent annually), Denver (-2.1 percent), San Antonio (-0.8 percent), and Phoenix (-0.7 percent),” the report reads.

“Though incomes have understandably outpaced rents in markets where rent growth has turned negative, affordability improvements have even reached metros where rent growth remains strong.”

A monthly rental budget of $2,000 will net different types of properties based on the region, according to a Nov. 10 report from online rental marketplace Apartments.

“Renters in smaller cities like Memphis, Buffalo, and Indianapolis can afford three-bedroom apartments within a $2,000 budget, while in big cities like Boston, Los Angeles, and Seattle, that same budget often only covers a studio,” it reads.

There have been proposals to freeze the amount that can be charged on rental properties.

Zohran Mamdani, a self-described democratic socialist who won the New York City mayoral race this month, proposed a rent freeze during his campaign. Washington state, Oregon, and California have already implemented statewide rent control.

Supporters of rent-freeze policies argue that such measures are required to ease the burden on American families. However, critics warn that pursuing these policies could deter investment in the rental market, further exacerbating the issue in the long run.

A survey of The Epoch Times readers conducted on Oct. 29 found that most opposed rent-freeze measures and advocated pursuing market solutions.

Nearly 40 percent suggested that builders cut costs to reduce the housing shortage, which could then bring down rents.