 |
| New York City has climbed to the fifth spot on the list of the world's most expensive cities for luxury living, surpassing prestigious locations like Monaco and Dubai. |
{getToc} $title={Table of Contents}
Why New York? 🤔
According to the latest report from the Julius Baer Group, a renowned Swiss private banking group that annually releases the Julius Baer Lifestyle Index, New York City has seen a significant rise in the cost of opulent items and luxury experiences, propelling it six places higher from its previous 11th position. As a result, it now stands as the most expensive city in the United States and the entire Americas for high-net-worth individuals seeking a luxurious lifestyle.
The Julius Baer Lifestyle Index
The Julius Baer Lifestyle Index is based on a selection of 20 goods and services deemed representative of the discretionary spending habits of global high-net-worth individuals. These items include extravagant purchases like jewelry, luxury cars, business-class flight tickets, high-end suits, treadmills, luxury watches, laser-eye surgery, and extravagant dinners. Additionally, the index takes into account residential property prices, private school fees, and automobile tax payments in 25 of the world's most expensive cities.
$ads={2}
Impact of Rising Living Costs in New York City
The surge in prices for luxury items and services in New York City has led to its elevated position in the ranking. This increase in living costs reflects the ongoing inflation crisis, impacting even the world's ultra-wealthy. New York City witnessed remarkable price hikes across various sectors:
- Drinking whiskey prices rose by 12 percent, with some whiskey bars offering a single drink for as much as $1,300.
- Handbag prices saw an 11 percent increase.
- Business-class flight tickets became 16 percent more expensive.
- Hotel stays experienced a 17 percent price surge.
- Tasting menus or degustation dinners are now 13 percent more expensive.
- The cost of owning and maintaining a luxury car escalated by 41 percent compared to the previous year.
Challenges Amidst Optimism
While the financial situation of many high-net-worth individuals has improved in the past year, the Julius Baer Group's report emphasizes that the rising cost of luxury goods and services has created a "money illusion" effect, impacting their purchasing power. Despite these challenges, the survey reveals a mildly optimistic post-pandemic picture, as the wealthy have resumed normal spending patterns.
Asian Cities Dominate the List
New York City's fifth position places it behind Singapore, Shanghai, Hong Kong, and London in terms of luxury living costs. Notably, most of the world's most expensive cities for luxury living are located in Asia, a trend that has continued for the fourth consecutive year.
Interestingly, Europe, the Middle East, and Africa are comparatively more affordable regions for the world's ultra-rich to pursue luxurious lifestyles, while North and South America are catching up with Asia due to persistent inflation and economic challenges in the United States.
As New York City solidifies its position among the most expensive cities for luxury living, the affluent populace navigates a landscape where the pursuit of opulence is matched by the impact of economic shifts.