Wharton's novel is set in the opulent high society of Gilded Age New York and takes place sometime between 1905 and 1910. This was an era of enormous wealth disparity in the United States, and the gaping void between rich and poor is a central focus of the book. The upper-crust homes and hotels of the novel’s elite are characterized by glamour, wealth, and extravagance. Wharton’s characters engage in lavish events and show off their extreme affluence whenever they can. The novel's setting is essential to establishing the superficial values and rigid social conventions that dominate the narrative: appearances, in The House of Mirth, are everything.
However, outside the luxurious settings of the upper class lurks the harsh reality of poverty. As Lily Bart’s fortunes wane, the gulf between her opulent life as a member of the upper class and her future as a member of the working-class looms large. Lily is terrified of a “dingy” life of financial insecurity, and that’s exactly where she ends up. This contrast underscores the precariousness and fragility of social standing and wealth.
The book frequently depicts social venues such as balls, dinners, and gatherings that highlight the niceties of class interactions. These exclusive events—by invitation only—serve as the battleground for social maneuvering. Behaving well at these events is critical to establishing or maintaining social status. Invitations to the right events and being seen at the right place with the right people is a central preoccupation for Lily, Bertha, and the rest of Wharton's extensive cast of characters. The setting of the novel shifts between the country estates of the hyper-wealthy in summer and their urban mansions during the winter’s social season. These seasonal shifts are closely linked to class, as it was only the wealthy who migrated between summer and winter homes. The seasonal settings also align with the phases in Lily’s life, from the summery opulence of the beginning of the book to the “winter” of her downfall.
As a rule, whether it's in the city or the country, Wharton depicts the social world of the novel as restrictive. This mirrors Lily’s entrapment in the rigid societal norms of the period. Women—especially young, unmarried women—living in this time had very little personal freedom and were subjected to an extremely strict set of behavioral rules. Although the houses are opulent and the dresses beautiful in this novel, then, these things come at a cost.
