Auction sales have declined for a third consecutive year, raising questions about a deeper shift in the global art market. Sales at major houses — Sotheby’s, Christie’s, and Phillips — totaled $3.98 billion in the first half of 2025, a 6% drop from 2024 and down 44% from 2022, according to ArtTactic. These figures mark the lowest auction performance in over a decade, excluding the pandemic’s impact.
Postwar and contemporary art, long the engine of the market, fell by 19%, underscoring the cooling demand for traditional fine art. Despite this, personal wealth has soared. Since the onset of COVID-19, the top 10% of Americans have added $37 trillion to their net worth. Stock markets have remained strong, and asset values continue to rise. Historically, art values closely tracked increases in wealth, but that relationship appears to have fractured.
Yale professor William Goetzmann, who documented the historical connection between wealth and art demand, noted that the current disconnect may reflect either a temporary dip or a more permanent structural change. One factor may be the generational transition underway: baby boomers, who drove much of the art market’s growth over the last four decades, are stepping back from buying or are liquidating their collections. Their heirs often show less interest in inheriting the art.
Millennials and Gen Z — the next wave of wealthy collectors — have different tastes and preferences. Many prefer digital engagement, more accessible pricing, and non-traditional luxury items. Auction houses are adapting accordingly. Online bidding now accounts for the majority of activity, and younger collectors dominate participation for pieces under $100,000. Works priced below $5,000 saw a 13% rise in sales, while pieces above $10 million dropped by 39%.
Luxury categories, including jewelry, handbags, and watches, have emerged as growth drivers. Christie’s saw a 29% jump in luxury sales, highlighted by the $14 million Marie-Therese Pink Diamond and an $11 million vivid blue diamond. Sotheby’s also benefitted, selling the “Mediterranean Blue” diamond for $21.5 million. Jewelry alone surged 68% in sales, with growing appeal among young, female collectors.
Auction houses are now focused on aligning offerings with the evolving preferences of a new generation. With 80% of bids placed online and nearly one-third of successful buyers from younger age groups, the art market’s future is likely to look very different from its past.
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