The New Luxury: What Americans Really Value Nowadays

Luxury in America is undergoing one of its biggest cultural shifts in decades. According to our latest national study, 72% of U.S. adults say their definition of luxury has changed, moving away from status symbols and toward quality, comfort, emotional well-being, and meaningful everyday experiences.

This is the rise of emotional luxury, where people buy products and experiences that make life feel better, not louder.

What’s Driving the Change? Emotional Economics

The study shows a clear trend:
More than 60% of Americans now purchase luxury for self-care, stress relief, and emotional reward.
Consumers aren’t chasing prestige, they’re chasing peace, joy, and small moments that feel restorative.

This trend defines what we call The Treat-Yourself Economy, where luxury becomes a personal wellness choice.

What Americans Consider Luxury Today

Quality over everything, when asked what makes something a luxury:

• Quality ranked #1
• Price ranked #2
• Brand recognition ranked #3
• Social media influence ranked last

Consumers are less impressed by flashy name brands and more drawn to products that feel thoughtful, well-made, and built to last.

Select the top 3 factors that play into how you personally define luxury (luxury item, luxury experience, etc.)

When quality is the primary driver, “luxury” becomes a personal standard. This is why brands that can prove craftsmanship and consistency tend to outperform brands that rely only on status signaling.

How Often Americans Buy Luxury (And Why)

Luxury buying is more purposeful and occasional:

• 50% buy luxury only a few times a year
• ⅓ view luxury as a “treat” tied to specific moments
• People splurge to celebrate milestones or improve daily comfort

Luxury is not a routine, it’s a meaningful pause. It often shows up around birthdays, trips, self-improvement goals, or moments where people want to “upgrade” their day-to-day.

How often do you purchase luxury items or services?

This pattern creates a market of intermittent splurges, where timing and context matter. Brands win by aligning with life moments, not by expecting constant demand.

When you do purchase luxury items, what is the main reason?

Two motivations consistently rise to the top: rewarding personal achievements and upgrading to higher quality. Modern luxury is both emotional and functional.

How do you feel about spending money on luxury items? Select the option that most closely represents your sentiments

The data shows three distinct consumer mindsets. Many see luxury as a treat but remain cautious about overspending. Others feel luxury meaningfully improves life. A sizable share avoids luxury purchases altogether, reflecting ongoing price pressure and intentional budgeting.

Second-Hand Luxury Goes Mainstream

One of the biggest shifts is accessibility. 54% of Americans are open to buying second-hand luxury, with resale and pre-owned marketplaces becoming normalized.

People want the feeling of luxury without the full price tag, and without the guilt. Pre-owned is increasingly viewed as smart and sustainable, not “less than.”

Do you believe that the idea of luxury has changed in recent years?

When Americans say luxury is changing, they are often describing a move away from exclusivity and toward personalization, comfort, and self-defined meaning.

Would you consider buying a luxury item second-hand or pre-owned to save money?

Second-hand luxury expands the market and reshapes competition. Consumers are no longer choosing only between luxury brands. They are choosing between new, pre-owned, and value-driven premium alternatives.

The Price Thresholds That Define Luxury Today

Americans have precise mental markers for when a purchase “feels” luxurious:

• Fine Dining: $200–$400
• Hotels/Resorts: $500–$999
• Technology & Flights: $1,000–$1,499

These thresholds help explain why some premium brands succeed: they land just above the “luxury line” in a way that feels justifiable, especially when the experience is noticeably better.

For the below categories, at what price point would you consider the purchase to be a luxury expense?

Luxury thresholds differ across categories. For some, luxury starts with a special meal. For others, it starts with a premium device or an upgraded trip. The common denominator is perceived value.

How much more are you willing to pay for a product if it is considered a luxury brand (e.g., higher quality, better design, exclusivity)?

Americans are nearly evenly split on premiums. Many are willing to pay 10 to 50% more when the quality difference is clear, while a large segment is unwilling to pay more at all. Luxury labels alone are not enough to justify price in 2025.

The Brands Americans Call “Luxury” Now

Across categories, Americans consistently name brands known for quality, consistency, and emotional connection, not exclusivity.

Top aspirational brands include:

• Apple, Samsung, Sony (tech)
• Nike, Lululemon (activewear)
• Delta, Emirates, Qatar (travel)
• West Elm, Ashley Furniture (home comfort)

In which of the below categories have you spent (or will consider spending) luxury prices in? (Select all that apply)

Luxury spend is not evenly distributed. Categories like cars, fashion, jewelry, and premium alcohol often carry higher “always luxury” behavior, while dining, hotels, home décor, and tech are more selective and moment-driven.

Please identify the sentiment that most closely represents your “luxury spending” relationship in the category.

This category sentiment view highlights where luxury feels consistent versus occasional, and where consumers are open to upgrading depending on the context, the season, and what they personally value most.

These brands feel luxurious because they improve daily life, not because they signal wealth.

Why This Study Matters

This research gives organizations a clear view of:

• What people value emotionally
• How spending behavior is shifting
• What “luxury” means across categories
• Which price points drive purchasing decisions
• The brands consumers trust and aspire to

It’s a roadmap for understanding the new American consumer, where luxury is increasingly defined by comfort, intention, and lived experience.