Khaberni - In the heart of a city that never sleeps, a new economy takes shape, encapsulating the equation of wealth and cost in a single scene: elite restaurant congestion, waiting lines in luxury bars, and continuously rising rents.
While the middle classes suffer from rapid inflation and suffocating living pressures, the wealthy continue to spend with unprecedented generosity, reshaping the local economic map in New York.
The Wall Street Journal reveals that what's happening in the city isn't just a local phenomenon, but a direct reflection of the widening class gap in the entire American economy, as the wealthy's spending has become the primary driver of economic growth, even amid warning signs of a potential recession.
The Wealthy's Spending Revitalizes the City's Economy
Newspaper data indicates that the top 10% of income earners in America accounted for 49.2% of national spending in the second quarter of 2025, the highest rate ever recorded. The expenditure of this group increased by 4.4% annually, compared to an increase of only 2% among the rest of the population.
In New York specifically, this disparity is clear, as the Areitzeko's Patron restaurant in Manhattan sells drink bottles for $300 and lamb dishes for $75, while its private rooms are fully booked until the end of the year.
Co-owner Diana Lane says, "We are grateful that our customers do not back down from premium choices despite the economic uncertainty… We no longer fully understand the American economy."
Luxury Without Limits
The Wall Street Journal clarifies that the city has about 34,000 households earning over a million dollars a year, including 2,000 households earning over ten million dollars, in addition to 152 billionaires who make New York their primary business base.
Noah Tepperberg, CEO of Tao Group Hospitality, says, "People who spend thousands of dollars in one night simply don’t change their lifestyle," noting that nightclub revenues have increased by 10% in one year.
At the recently reopened Waldorf Astoria, guests flock to $38 martinis and $28 appetizers, while the average spending of luxury hotel guests in the city is $1710 per night, the highest in any American city according to CoStar.
A City with Two Economic Levels
Despite this lavish prosperity, thousands of residents live on the edge of purchasing power, as rents have risen by more than 7% within a year, while the median home price has surpassed $1.2 million, and about two-thirds of properties are bought entirely in cash.
Rich Ferrari, CEO of the New York branch of Douglas Elliman Realty, says, "Many buyers are using family fund money to purchase apartments in cash in luxury buildings," adding that some units are offered for rent at $100,000 a month.
Real estate broker Rachel Glaser describes the scene, saying, "It's a parallel world… There are people earning $5 million a year who say they can't afford the prices."
Youth on the Margins and a Windowless Reality
Away from the glass towers, many young people live in small, sunless apartments. Bryce Chan, a New York University graduate, pays $1850 a month - nearly half her salary - for a windowless, air-conditioning-free room.
"Trader Joe's chickpea tins have become a staple meal," she says, while she pays $20 for a simple drink at any average bar.
Meanwhile, young Ellie Williams documents her generation's life through video clips on social media, saying, "Living in New York means going out, spending, experiencing… That's the whole idea."
The Wealth Gap Widens and the Economy Becomes Unbalanced
The Wall Street Journal confirms that the wealthy class has become the backbone of the local economy, as the top 1% of residents pay about half of the city's income taxes.
However, this excessive concentration of wealth deepens the social divide and creates a fragile economic reality, where those who own wealth live in an isolated bubble of luxury while the middle class erodes.
The newspaper concludes that New York has become "a symbol of a new era of luxury detached from reality," where even the wealthy themselves "no longer feel rich enough" in a city where high costs are a standard of existence, not a luxury.
Mamdani, Mayor of New York for Change
Meanwhile, the Democratic candidate Zohran Mamdani announced his victory in the New York mayoral race, stating that he will officially assume the mayoral duties for New York in January.
Addressing his audience amid warm applause, he said, “You have mandated me for change and for new politics,” committing to improving the conditions of New York City to make it better than it is now.
Mamdani is a socialist Democrat and is the first Muslim mayor of the largest city in the United States.
