The group came to be after the dissolution of lead singer/songwriter Jason Dunn's previous band, The Halogens, whose career arc led them from the small but vibrant music scene of Burlington, Vermont to Boston, a much larger stomping ground with a broader acceptance of the band's stylistic direction. Thanks to the histories and previous efforts of the band's members, The Luxury began where many bands eventually wind up - headlining the Cambridge clubs on the weekends and enjoying Boston area press and radio attention from the outset.

After settling on a solid linup in 2006 consisting of Justin Day on bass guitar, Daanen Krouth on lead guitar, Brooks Milgate on keyboards and Stephen Foster on drums, the band released their first recorded effort, 2007's This Is Why We Can't Have Nice Things, self-recorded and produced in the very early stages of Dunn's home studio, which as of 2011 has put out over a dozen recordings for various area artists. Despite the youth of the group and Dunn's youth as an engineer, the record was a great success for any independent act, garnering airplay across the nation, spending time in the CMJ top 200, and earning far-reaching praise for the band's musicianship, stratospheric melodies and harmony-laden arrangements. Thematically, the album was largely culled from Dunn's own relationship experiences and worldview, and represented songs that had been gathering in varying stages of completion for the previous four years.

In 2008, The Luxury filmed a video for the album track "Malcontent", directed by Trey Hamilton and featuring equal parts humor and shoestring budget creative tricks. In the summer of the same year, UK megastars Coldplay announced that they would be picking up local acts in six US markets to open their stadium shows on the Viva la Vida tour. The Luxury, now featuring Steven Borek on keys, threw their hat in the ring with the same video. Through a selection process involving a nod from Boston's WFNX radio, a long and ridiculous public voting process, and ultimately their selection from a circle of three finalists by Coldplay themselves, The Luxury suddenly leapt from Boston's mid-sized clubs to the 20,000 seat Boston Garden for a massive performance in August. The band took the money from the show, purchased plane tickets and a van rental, and in September toured California under their own power.

The Luxury was selected to perform in 2009's Rock and Roll Rumble, in what would turn out to be the last year the 31-year old Boston tradition that took place under the banner of media giant WBCN before the station folded that summer. Previous winners of the 24-band, three-round competition have included 'Til Tuesday (1983), The Sheila Divine (2000), Bleu (2001) and The Dresden Dolls (2003). The band cruised through their preliminary round to a smashing victory, and although eliminated in the semifinals, The Luxury returned in the final round of the competition as a wildcard entry, swept the judging panel and won an enormous purse of cash and prizes, all of which were perfectly geared to support the band's next step, the July 2009 release of In The Wake Of What Won't Change.

The second album was recorded in a whirlwind tour of Boston's best studios, all included in the Rumble prize package and all of which enabled the band to release yet another record without the necessity of a record label. Adored by critics and fans alike, the album featured a rawer, more agressive sound that more accurately reflected the band's live energy without losing the thick harmonies and layered arrangements of the first release. Additionally, the band arranged the record to flow as two sides, harkening back to the days of the vinyl LP. The album and the multimedia-laden CD Release at the legendary Paradise Rock Club in Boston kept the band in the spotlight through the rest of '09 and into 2010, when Foster suddenly announced he would be leaving for Oregon. After spending most of 2010 finding the appropriate replacement for Foster on the drums, The Luxury is currently back in the studio with new drummer Brandon Erdos writing the third record, earmarked for release in the later months of 2011.