The song lyrics were written by the band Van Halen, as they were asked to write a song for the 1979 movie "Over the Edge" starring Matt Dillon. The movie (and the lyrics, although more obliquely) are about bored, rebellious youth with nothing better to do than get into trouble. If you see the movie, these lyrics will make more sense. It's a great movie if you grew up in the 70s/80s you'll definitely remember some of these characters from your own life. Fun fact, after writing the song, Van Halen decided not to let the movie use it.
Yeah, house got too crowded clothes got too tight
And I don't know just where I'm going tonight
Out where the sky's been cleared by a good hard rain
There's somebody callin' my secret name
I'm going down to Lucky Town
Going down to Lucky Town
I want to lose these blues I've found
Down in Lucky Town
Down in Lucky Town
Had a coat of fine leather and snakeskin boots
But that coat always had a thread hangin' loose
Well I pulled it one night and to my surprise
It led me right past your house and on over the rise
I'm going down to Lucky Town
Down to Lucky Town
I'm gonna lose these blues I've found
Down in Lucky Town
Baby, down in Lucky Town
And I had some victory that was just failure in deceit
Now the joke's comin' up through the soles of my feet
I been a long time walking on fortune's cane
Tonight I'm steppin' lightly and I'm feelin' no pain
Well here's to your good looks baby now here's to my health
Here's to the loaded places that we take ourselves
When it comes to luck you make your own
Tonight I got dirt on my hands but I'm building me a new home
Going down in Lucky Town
Down in Lucky Town
I'm gonna lose these blues I've found
Down in Lucky Town
Baby, down in Lucky Town
I'm going down to Lucky Town
Down to Lucky Town
I'm gonna lose these blues I've found
Down in Lucky Town
Baby, down in Lucky Town
I'm going down to Lucky Town
Down to Lucky Town
I'm gonna lose these blues I've found
Down in Lucky Town
Baby, down in Lucky Town
And I don't know just where I'm going tonight
Out where the sky's been cleared by a good hard rain
There's somebody callin' my secret name
I'm going down to Lucky Town
Going down to Lucky Town
I want to lose these blues I've found
Down in Lucky Town
Down in Lucky Town
Had a coat of fine leather and snakeskin boots
But that coat always had a thread hangin' loose
Well I pulled it one night and to my surprise
It led me right past your house and on over the rise
I'm going down to Lucky Town
Down to Lucky Town
I'm gonna lose these blues I've found
Down in Lucky Town
Baby, down in Lucky Town
And I had some victory that was just failure in deceit
Now the joke's comin' up through the soles of my feet
I been a long time walking on fortune's cane
Tonight I'm steppin' lightly and I'm feelin' no pain
Well here's to your good looks baby now here's to my health
Here's to the loaded places that we take ourselves
When it comes to luck you make your own
Tonight I got dirt on my hands but I'm building me a new home
Going down in Lucky Town
Down in Lucky Town
I'm gonna lose these blues I've found
Down in Lucky Town
Baby, down in Lucky Town
I'm going down to Lucky Town
Down to Lucky Town
I'm gonna lose these blues I've found
Down in Lucky Town
Baby, down in Lucky Town
I'm going down to Lucky Town
Down to Lucky Town
I'm gonna lose these blues I've found
Down in Lucky Town
Baby, down in Lucky Town
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I think that the "Lucky Town" might be the name of a hotel (pub, bar ect)