The rich have cut their spending on everything from homes to jewelry, leading some to wonder if the wealthiest Americans are beginning to fear a recession. From real estate and retail stores to classic cars and art, the weakest segment of the American economy right now is the very top.
Luxury real estate is having its worst year since the financial crisis, with Manhattan seeing six straight quarters of sales declines. According to Redfin, sales of homes priced at $1.5 million or more fell 5 percent in the U.S. in the second quarter.
Retailers to the 1 percent are faring the worst, with Barney’s filing for bankruptcy and Nordstrom posting three consecutive quarterly declines in revenue. At this month’s massive Pebble Beach car auctions, less than half of the cars offered for $1 million or more were able to sell. And in the first half of 2019, art auction sales were down for the first time in years. Sales at Sotheby’s dropped 10 percent, and Christie’s auction sales were down 22 percent from a year ago.
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