In this article, we will take a look at the 20 most luxurious cities and places in the US. If you want to skip our detailed analysis, you can directly check out the 5 Most Luxurious Cities and Places in the US.
The United States is one of the most expensive countries in the world. With high inflation, the cost of living has become one of the biggest challenges faced by families living in the US. The price of food, energy, fuel, and other utilities has surged massively, impacting the living standard of the residents in the country. However, for the rich people things are different and they like to spend money on fancy things and eat at Michelin-rated restaurants, irrespective of increasing expenses due to inflation. They have a luxury lifestyle that involves spending on million-dollar properties, cars, and luxury clothing, among many things. Another main aspect that differentiates the US from other countries is the high concentration of the millionaire population.
According to the Global Wealth Report 2024 by Credit Suisse, the number of millionaires in the US was almost 22 million in 2023. Over the last five years, the millionaire population in the US has soared by 35%, nearly twice as fast as China’s. The US is home to almost 38% of the world’s millionaires, while 6.57% of the US population is millionaire, as of 2023. The millionaire population in the US is projected to cross 25 million by 2028, growing at 16% between 2023 and 2028. The American millionaire lives in some of the most luxurious cities and places in the US, with New York City being the global millionaire hub. New York City is one of the most expensive cities to live in the US in 2024. In addition, New York state is also among the most expensive states to live in 2024.
The Luxury Goods Market in the US
The demand for luxury goods in the US is credited to the extensively wealthy population with high income, willing to spend on high-end luxury accessories. According to a report by Emarketer, the US luxury goods retail sales are projected to reach $136 billion by 2027. Whereas, the US luxury goods market is expected to grow at a compound annual growth rate of 5.14% between 2024 and 2029, as per Mordor Intelligence.
According to a report by YouGov, over 86% increase in the luxury goods purchase intent was experienced in the US from 2021 to 2024. In addition, Americans agreeing on luxury goods as a good investment have increased by 34% since 2021, while a 33% newer population is willing to pay more for luxury brands. In 2023, over 40% of luxury buyers spent more than $1,000 on luxury goods. Whereas, 37% of the US citizens aged between 35-44 are likely to spend between $1,000-$10,000 on luxury goods in 2024. Young adults aged between 18 and 24 are likely to spend over $100,000 on luxury goods this year.
In 2023, shoes were the most common luxury item purchased in the US across all age groups, while beauty products were more popular among 18-24 year olds. Fashion accessories were the second most purchased luxury items with buyers aged over 25 years old. The majority of people buy luxury goods to reward themselves for accomplishments and to feel good. Nearly 42% and 41% of Americans buy luxury products as a reward or to feel good, respectively. Whereas, almost 21% of people in the US buy luxury goods for investment purposes. For instance, sneaker trading is famous on StockX, including other luxury items. Some of the top luxury brands that Americans are considering buying in 2024 include Gucci, Rolex, Dior, Tiffany & Co., Louis Vuitton, and Prada, among others.
READ ALSO: 15 Best Flood Insurance Companies Heading into 2024 and 20 Best Places with the Least Natural Disasters in the US.
The Leader in Luxury Products
LVMH Moet Hennessy Louis Vuitton SE (EPA:MC) is the largest luxury brand in the world with a market capitalization of €339.25 billion, as of August 29. LVMH owns 75 luxury brands in six different sectors including Dior, Tiffany & Co., and Louis Vuitton, among others. The company has businesses in sectors including Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective Retailing.
In 2023, LVMH Moet Hennessy Louis Vuitton SE (EPA:MC) had record growth with a revenue of €86.15 billion, up by 8.80% year over year. The US added the highest revenue for the company with a share of 32%, followed by Asia at 21% and Europe at 20%. In the US, selective retailing products of LVMH were most in demand with a total revenue share of 38%, followed by a 33% share of fashion and leather goods.
In 2024, one of the main highlights for LVMH was the partnership with the Olympics. The company had a multifaceted collaboration with the Paris Olympics 2024 and LVMH’s top Maisons took part in the event including Berluti, Chaumet, Dior, Louis Vuitton, Moët Hennessy, and Sephora, the Official Partner of the Olympic and Paralympic Torch Relays.
So far in 2024, LVMH Moet Hennessy Louis Vuitton SE (EPA:MC) has made sound progress, recording revenue of €41.7 billion in the first half of 2024, a rise of 2% year-over-year. The US had the second-highest revenue share for the company, accounting for 25% of the total revenue. Despite the geopolitical and economic uncertainty, LVMH was able to record growth in the US, and double-digit revenue growth in Japan, while the rest of Asia also delivered strong growth. During the first half of 2024, LVMH increased its free cash flow to over $3 billion, up by 74% year over year. Addressing the shareholders of the company, here is what the CEO of LVMH, Bernard Arnault, said:
“The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty. Driven as ever by our dual focus on desirability and responsibility, we have continued to work towards achieving the targets set out in our environmental and social action programs. In a year marked by our partnership with the Paris 2024 Olympic and Paralympic Games, we are honored to share our creativity, excellent craftsmanship, and deep commitment to society to make this event a resounding success and an opportunity for France to shine on the world stage. While remaining vigilant in the current context, the Group approaches the second half of the year with confidence, and will count on the agility and talent of its teams to further strengthen its global leadership position in luxury goods in 2024.”
LVMH has a dividend yield of 1.95%, as of August 29. In 2023, the company delivered a dividend of €13 per share. For 2024, the company has announced an interim dividend of €5.50 per share, payable on December 4, 2024. LVMH stock has an average price target of €843.10 and has an upside of almost 25%, as of August 29.
While we acknowledge the potential of LVMH stock as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Now, let’s take a look at the 20 most luxurious cities and places in the US.
A business suit clad executive looking out the window of a highrise, the New York skyline in the background.
Our Methodology
To compile our list of the 20 most luxurious cities and places in the US, we shortlisted the list of cities with the highest average income of the top 5% sourced from the US Census Bureau.
We have also mentioned the number of millionaires by state for each city sourced from Phoenix Marketing International’s annual Phoenix Wealth & Affluent 2019 report.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
20 Most Luxurious Cities and Places in the US
20. Nashville, Tennessee
Average Income of Top 5% (2017): $345,233
Millionaires by State (2019): 139,335
The average income of the top 5% in Nashville is around $345,000. Nashville is one of the cities in Tennessee with the most millionaires.
19. Miami, Florida
Average Income of Top 5% (2017): $367,865
Millionaires by State (2019): 496,971
Miami is one of the cities with the most millionaires in the US. The state of Florida had a total millionaires of over 496,000, as of 2019. In Miami, an average person from the top 5% population earns over $367,000. Miami is one of the most luxurious cities and places in the US.
18. Portland, Oregon
Average Income of Top 5% (2017): $383,886
Millionaires by State (2019): 108,858
Portland ranks among the 20 most luxurious cities and places in the US. Portland has one of the highest local purchasing power in the US. The state of Oregon has over 108,000 millionaires, as of 2019, and most of them reside in Portland.
17. Minneapolis, Minnesota
Average Income of Top 5% (2017): $397,545
Millionaires by State (2019): 167,206
Minneapolis has experienced a rapid increase in housing costs. Minneapolis is one of the richest states in Minnesota with an average income of the top 5% over $397,000. Minneapolis ranks 17th among the most luxurious cities and places in the US.
16. Raleigh, North Carolina
Average Income of Top 5% (2017): $403,387
Millionaires by State (2019): 224,054
Raleigh, another city in Carolina, is one of the most luxurious cities and places in the US. The average income of the top 5% in Raleigh is around $403,387.
15. Chicago, Illinois
Average Income of Top 5% (2017): $421,347
Millionaires by State (2019): 346,873
Chicago ranks 15th among the most luxurious cities and places in the US. Housing costs in Chicago are 77% higher than the state average and 38% higher than the national average. The state of Illinois has around 346,873 millionaires and most of them live in Chicago.
14. Houston, Texas
Average Income of Top 5% (2017): $428,819
Millionaires by State (2019): 650,216
Houston is one of the most populated cities in the US with a total population of over 2 million. The state of Texas has over 650,000 millionaires and most of them live in Houston. Houston ranks among the 20 most luxurious cities and places in the US.
13. San Diego, California
Average Income of Top 5% (2017): $437,061
Millionaires by State (2019): 1,147,251
San Diego is another famous city in California. The top 5% have an average income of around $437,061 in San Diego and ranks 13th among the most luxurious cities and places in the US.
12. Austin, Texas
Average Income of Top 5% (2017): $437,648
Millionaires by State (2019): 650,216
Austin is another popular city in Texas and has the second-highest millionaire population in the state after Dallas. The top 5% of people in Austin earn over $437,000 per year.
11. Denver, Colorado
Average Income of Top 5% (2017): $437,850
Millionaires by State (2019): 170,223
Denver is one of the richest cities in Colorado and the top 5% of the population in the city earns an average income of more than $437,000. Denver ranks 11th among the most luxurious cities and places in the US.
10. Charlotte, North Carolina
Average Income of Top 5% (2017): $448,540
Millionaires by State (2019): 224,054
In Charlotte, housing and healthcare costs are 4% higher than the state average. The top 5% of people in Charlotte earn an average income of over $448,000. Charlotte ranks 10th among the most luxurious cities and places in the US.
9. Dallas, Texas
Average Income of Top 5% (2017): $467,421
Millionaires by State (2019): 650,216
Dallas is one of the most famous cities in Texas and has a large millionaire population. The average income of the top 5% in Dallas is around $467,421. Dallas is one of the most luxurious cities in the US.
8. Los Angeles, California
Average Income of Top 5% (2017): $469,520
Millionaires by State (2019): 1,147,251
Los Angeles is one of the most famous cities in the US. Los Angeles is a millionaire hub and a lot of celebrities and social media influencers live in LA. The top 5% population of LA earns over $469,000 each year.
7. San Jose, California
Average Income of Top 5% (2017): $474,623
Millionaires by State (2019): 1,147,251
San Jose is the seventh most luxurious city in the US and a large population of millionaires live in the city. The top 5% earn more than $474,000 in San Jose each year.
6. Seattle, Washington
Average Income of Top 5% (2017): $501,455
Millionaires by State (2019): 233,155
The overall living cost in Seattle is 24% higher than the state average and 45% higher than the national average. Seattle is one of the cities with the most millionaires in the US.
5. Boston, Massachusetts
Average Income of Top 5% (2017): $501,668
Millionaires by State (2019): 254,201
Boston ranks fifth among the most luxurious cities and places in the US. Massachusetts has more than 254,000 millionaires and most of them live in Boston. The top 5% of the population in Boston earns more than $500,000 per year.
4. New York City, New York
Average Income of Top 5% (2017): $534,721
Millionaires by State (2019): 570,456
New York City is a global hub for millionaires and it has the highest percentage of millionaires among other cities in the state. The average income of the top 5% in New York City is over $534,000. New York City ranks fourth among the most luxurious cities and places in the US.
3. Atlanta, Georgia
Average Income of Top 5% (2017): $569,826
Millionaires by State (2019): 239,287
In Atlanta, housing costs are 29% higher than the state average. The top 5% of the population in Atlanta earns over $569,000 each year. Atlanta is one of the most luxurious cities in the US.
2. Washington, District of Columbia
Average Income of Top 5% (2017): $582,044
Millionaires by State (2019): 29,506
Washington, D.C. is one of the richest places in the US, where the top 5% earn over $582,000. The District of Columbia has over 29,000 millionaires.
1. San Francisco, California
Average Income of Top 5% (2017): $657,116
Millionaires by State (2019): 1,147,251
San Francisco is a city-county in California and is the most luxurious city and place in the US. San Francisco’s top 5% of the population earns more than $657,000 each year.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published on Insider Monkey.