The US luxury market:

WHY SCALE
STILL MATTERS

US LUXURY

The US remains a cornerstone of the global luxury market. Not because it is the fastest growing, nor the most experimental, but because it combines scale, depth of wealth and a uniquely resilient domestic consumer base.

In an era defined by geopolitical volatility and shifting consumer confidence, those fundamentals are asserting themselves once again.

Growth is steady rather than spectacular – a five year CAGR of 3.2% through to 2030 – but its importance lies in durability. Even as global demand oscillates, the US continues to act as luxury’s stabilising force.

It is this relative stability and market size that makes the US all the more attractive to expansive luxury brands against the current headwinds facing the global luxury market.

Valued at $143bn in 2025, the US luxury sector is projected to be more than twice the size of China’s.

Source: Savills Research

Resilience built on domestic wealth

The strength of the US luxury market is underpinned by something increasingly rare: depth of domestic demand. With almost 24 million millionaires – three times the number in China – the country has a vast pool of private wealth able to sustain spending amid external shocks.

Signals from the market remain broadly positive. The Americas’ personal luxury segment is forecast to deliver stability to modest growth in 2025, and recent trading data from leading luxury groups shows continued momentum, even as other regions soften.

For global brands and landlords, this resilience matters. It reinforces the US not just as a growth market, but as a portfolio anchor – a place where long term investments continue to perform.

Physical retail’s selective return

Luxury’s relationship with physical retail in the US is entering a new phase. After a period of extensive domestic expansion, brands are now recalibrating their approach – prioritising precision over proliferation.

In 2025, the US once again led the world for luxury store openings, accounting for more than a quarter of all new launches globally. But the strategy has evolved. Rather than blanket growth, brands are refocusing on locations that combine affluence, tourism and long-term brand equity.

New York has reasserted its position at the top of the global luxury hierarchy, with store opening activity rising sharply as rents rebalance and availability improves. Miami continues to perform as a dual engine market, fuelled by international visitors and an expanding base of domestic wealth.

As competition for best in class locations intensifies, the pace of openings is expected to moderate through 2026 – not because of weakening demand, but because suitable space is increasingly scarce.

Beyond the big three

While New York, Los Angeles and Miami remain the foundation of any US luxury strategy, opportunity is no longer confined to the traditional map.

Success now depends on understanding local consumer nuance and identifying high-conviction micro-locations – often within cities rather than across them. In this environment, insight and precision matter as much as scale.

On the West Coast, San Francisco is edging back into focus. Its recovery is highly targeted, driven by a return-to-office dynamic and renewed Asia Pacific travel, alongside significant investment linked to AI development in Silicon Valley. Here, location selection is critical: performance varies street by street, and the difference between success and underperformance is often measured in blocks, not boroughs.

Further inland, cities such as Chicago and Dallas continue to draw attention for their density of established wealth and domestically driven consumption, reinforcing their relevance for luxury brands seeking balanced exposure.

A generational shift reshaping the map

Looking ahead, one of the most significant forces influencing the US luxury landscape will be intergenerational wealth transfer.

An estimated US$26 trillion is expected to pass to younger generations over the next two decades – a shift already beginning to reshape demand patterns.

Cities with strong concentrations of Millennial and Gen Z affluence are set to benefit most. Markets such as Seattle and San Jose, underpinned by technology wealth and younger high-net-worth populations, are becoming increasingly relevant to long-term luxury strategies.

For landlords and brands alike, this raises important questions about how, where and when to invest – particularly as younger consumers place greater emphasis on experience, authenticity and locality.

The rise of the
resort market

The expansion of luxury retail in the US is no longer confined to urban flagships. Resort markets are emerging as a critical growth frontier – not just for seasonal pop-ups, but for permanent, high quality space.

Beyond established names such as Palm Beach, Aspen and the Hamptons, momentum is building in new guard destinations including Park City, Montecito and Jackson Hole. Demand in these locations is strong, but supply is exceptionally tight. In many cases, the constraint is not consumer appetite but the availability – or creation – of suitable real estate.

For luxury brands, this shifts the challenge from finding a location to shaping one. And for landlords, it presents a rare opportunity to curate environments that blend retail, leisure and placemaking at the very highest end of the market.

ASPEN | COLORADO

Palm Beach | Florida

Park City | Utah

Jackson Hole | Wyoming

Why the US remains essential

For global luxury brands and landlords, the message is clear. The US is not just back in focus; it never really left. The difference today is that success depends less on scale alone, and more on precision, insight and long-term conviction.

In a global luxury market undergoing structural change, the US stands apart. Its power lies not in rapid acceleration, but in consistency – a combination of domestic wealth, selective expansion, and an evolving geography of opportunity

TODD SIEGEL, PRESIDENT US RETAIL, SAVILLS

Discover more about the US and global luxury market. Read Savills Global Luxury Report 2026.

EXPLORE HERE

TODD SIEGEL

tsiegel@savills.us

+1 312 595 2930

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The US luxury market:

WHY SCALE STILL MATTERS

Resilience built on domestic wealth

Physical retail’s selective return

The rise of the resort market

WHY SCALE
STILL MATTERS

The rise of the
resort market