"Private membership clubs," which had mainly existed in major U.S. cities, have recently been spreading to small and midsize cities. In particular, since the COVID-19 pandemic, high earners and newly affluent people who moved from big cities have emerged as the main clientele.
According to the Wall Street Journal (WSJ) on the 30th (local time), small and midsize U.S. cities have recently seen an increase in social membership clubs aimed at high earners. These clubs had mainly thrived in big cities such as New York and Los Angeles (LA), but as professional migration accelerated during the COVID-19 outbreak, they have increasingly taken root in small and midsize cities such as Savannah and Lexington.
The June, set to open in late fall this year, is also one of the membership clubs located in Jacksonville, a midsize city. Founded by a former consultant and real estate broker, the club charges an initiation fee of $5,000 (about 7 million won), and membership requires paying a monthly fee of at least $425 depending on the tier.
The club is slated to open in a neoclassical stone building that once housed a Federal Reserve Bank, with a dance club, bar, and private restaurant inside. More than 450 residents, including local notables such as Jacksonville Jaguars quarterback Trevor Lawrence and Shanna Khan, who holds equity in the club, have already signed up.
Founder Britt Morgensaks said, "When I moved from Brooklyn to Jacksonville in 2020, I wanted to transplant New York's social culture," explaining the motivation for the launch. She was convinced that demand for the cultural infrastructure enjoyed in big cities would also exist in small and midsize cities.
In fact, membership clubs are popping up across the United States. ◇ "Club Vardo" in Savannah, Georgia; ▲ "Camel Club" in Lexington, Kentucky; and ◎ "Green House Social Club" in Albany, New York, are cited as representative membership clubs that have recently opened or are about to open. Members who join can take part in a variety of social activities, including pool parties, DJ performances, wine tastings, and group drama viewings.
Craig Mandeville, a Jacksonville resident and entrepreneur who already joined The June, plans to use the membership club as a channel to discuss business expansion. Mandeville said in an interview with the WSJ, "The emergence of membership clubs will drive the expansion of Jacksonville's business network."
The surge in demand for membership clubs also aligns with the rising share of high earners in local communities. The U.S. Census Bureau noted, "Households in Jacksonville with annual income of $200,000 or more have increased by about 15% since 2021," adding, "During the same period, high-income households in Savannah rose 8%." In fact, Club Vardo, which opened in Savannah last year, has 250 members ranging from their 30s to 60s, most of whom are high-earning professionals such as doctors, lawyers, and professors.
According to Moody's Analytics, as of this year, households in the United States with annual income of $275,000 (about 385.79 million won) or more accounted for 49.7% of total household expenditure, the highest share since 1989. As the economic downturn leaves only high earners willing to spend, services that can meet their demand are increasingly likely to thrive.
A lower barrier to entry than traditional country clubs or golf and beach clubs is also cited as a strength of the new clubs. For example, at Ponte Vedra Inn & Club, a Florida country club founded in 1928 with a long history, the initiation fee alone is $150,000, and the wait time reportedly approaches two years. By contrast, new membership clubs can be joined through a simple application process or with a recommendation from an existing member.
Some also say membership clubs serve as more than simple social spaces, functioning as a "modern-day community." Jeff Klein, founder of the members-only San Vicente Club in LA and New York City, said, "Churches used to be the center of the community, but with religious activity declining now, people want new communities centered on offline activities," adding, "Membership clubs are meeting that demand, and small and midsize cities are no exception."