The Cost Of Living Like A Billionaire Hit A New High In 2025

The Rising Cost of Billionaire Living in 2025

Key Concepts: Cost of Living Extremely Well Index (CLWI), Thoroughbred Auction, Tax Shelters, Luxury Spending, Centabillionaires, Inflation, Consumer Price Index (CPI).

I. Thoroughbred Market Surge & Tax Implications

The 2025 Keeland yearling September sale witnessed record-breaking spending by wealthy buyers, totaling $532 million on racehorses. This resulted in an average yearling price of nearly $650,000 – the highest ever recorded, representing a 23% increase from 2024. A significant driver of this surge is a provision within President Trump’s “one big beautiful bill” act, allowing for a 100% write-off of racehorse purchases in the first year of ownership.

Eric Mitchell, Bloodstock editor at Blood Horse magazine, stated, “The bill has been a big thing for a lot of people to know that they can turn around and write off a substantial amount of what they're spending depending upon what the rest of their tax situation looks like. Over and over again, we heard that from people who were buying at the auction.” This growth in the Kentucky thoroughbred breeding industry is being compared to the mid-1980s, a period characterized by high federal tax rates but abundant tax shelters and loss write-offs.

II. The Cost of Living Extremely Well Index (CLWI)

Forbes has tracked the expenses of the ultra-wealthy since 1982 using the Cost of Living Extremely Well Index (CLWI), a consumer price index specifically for billionaires. In 2025, the CLWI increased by 5.5%, up from 4.7% the previous year, and double the general Consumer Price Index (CPI) rise of 2.7%. This indicates that inflation for billionaires was roughly twice as steep as for the average consumer.

III. Billionaire Wealth & Luxury Spending Trends

Currently, there are a record 3,148 billionaires globally, holding a combined wealth of $18.7 trillion. The average billionaire is now worth $5.9 billion, a 5% increase from 2024. The number of centabillionaires (those with fortunes exceeding $100 billion) has also dramatically increased, rising to 19 in 2025 from just one in 2019.

Global luxury spending reached nearly $1.7 trillion in 2025, remaining consistent with 2024 levels. However, the consumer base has shrunk to an estimated 340 million shoppers, down from 400 million in 2022, signifying that spending is increasingly concentrated among the wealthiest individuals. Experiences, particularly in fine dining and hospitality, are experiencing significant demand.

IV. Specific Examples of Rising Costs

Several items included in the CLWI basket have seen price increases:

• Luxury Concierge Services: A one-year membership with Canada-based Pure Entertainment now costs $200,000, up from $180,000 in the previous year, driven by increased demand from European and Middle Eastern clients. Steve Edeto, CEO of Pure Entertainment, noted that these customers view higher prices as indicators of quality.
• Yachts: The price of a British-made Oyster 595 sailboat has risen to nearly $4.2 million, a 7% increase. Stefan Zimmerman Shock, CEO of Oyster Yacht, stated, “Ownership is increasingly experienced driven. Clients are drawn to the opportunity to explore the world.”
• Private Jets: Prices have increased by 3%.
• Olympic-Size Swimming Pools: Costs are up 6%.
• Sporting Shotguns: Experienced a significant price jump of 26%.
• Fine Dining: Dinner at a three-star French restaurant, Le Bernardine, is 5% more expensive.
• Caviar: Acetra Caviar prices have increased by 9%.

V. Items Maintaining Stable Prices

Despite the overall increase in the CLWI, some luxury goods have maintained relatively stable prices:

• Bespoke Dress Shirts: A dozen shirts from Turnbull and Asser remain just under $12,000.
• Luxury Sheets: A set of cotton satine sheets from Frette still costs $3,700.
• Rolls-Royce Phantom: The extended wheelbase model remains around $600,000.

VI. Data & Statistics

• Total Spending at Keeland Yearling Sale (2025): $532 million
• Average Yearling Price (2025): $650,000 (23% increase from 2024)
• CLWI Increase (2025): 5.5%
• CPI Increase (2025): 2.7%
• Total Billionaire Wealth (2025): $18.7 trillion
• Average Billionaire Net Worth (2025): $5.9 billion (5% increase from 2024)
• Number of Billionaires (2025): 3,148
• Number of Centabillionaires (2025): 19
• Global Luxury Spending (2025): Nearly $1.7 trillion
• Luxury Shopper Base (2025): 340 million

Conclusion:

The data reveals a significant increase in the cost of living for billionaires in 2025, outpacing general inflation. This is driven by a combination of factors, including tax incentives, increased demand for luxury goods and experiences, and rising material and financing costs. While the ultra-wealthy can readily absorb these increases, the trends highlight a growing concentration of wealth and a shift in luxury spending towards an increasingly exclusive consumer base. The CLWI serves as a unique barometer of economic conditions for the world’s richest individuals, demonstrating that even for those with vast fortunes, the price of maintaining an extremely well lifestyle continues to rise.