If it is in excess, it is not tznius, it is not spiritually healthy for the people themselves and certainly not for their children, and it conflicts with the Torah perspective of Derech Eretz.
What is “in excess” and how to determine this is quite difficult, but for a person to live according to his monetary position and the esteem to which he is held in the community IS compatible with Torah principles, although a person who refrains from doing so (if not to the opposite extreme) is praiseworthy.
This how I recall the inyan from Chovos HaLvovos