The retail landscape for shoppers had a surprising uptick, surpassing most expectations for Black Friday and Cyber Monday shopping, but for the people stocking shelves and making sales, the glasses weren't nearly as rosy.
Research shows retail workers struggle to afford typical apartment rents, earning roughly half of what is needed, and even less in high-cost areas like New York City and California, where the gap between retail wages and rent prices is even wider. "In New York, the typical retail worker earns 71% less than they would need to afford the typical apartment—the largest shortfall among the metros Redfin analyzed," their experts reported.
Boston workers had a 66.5% shortfall; San Jose, Calif, 65.7%; Miami, 65.2%; and San Diego, Calif., 64.6%.
Even high-earning retail workers who live on the coasts fall short of the income needed for the typical apartment, per a new analysis from Redfin. Specifically, retail workers earn, on average, 52% less than the income needed to afford a typical US apartment.
The latest data shows the median retail worker wage is about $34,436, while the income needed to afford the typical apartment in a big city is around $71,172. The typical apartment costs $1,779 per month and experts say livability requires spending no more than 30% of your salary on housing costs.
"If the typical retail worker wanted to afford the typical apartment on their own, they would need to work 83 hours per week, which is obviously unrealistic for most people," Redfin experts wrote.
This comes amid another blow as seasonal retail hiring is expected to fall to the lowest level in 15 years, with the National Retail Federation predicting 265,000 to 365,000 seasonal workers will be hired in 2025, down from 442,000 last year.
So, how are retail workers surviving? “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,” Redfin chief economist Daryl Fairweather said in the Redfin report.