Smriti Malhotra
For several decades, New York has maintained its status as the capital of the art world. According to Robert Manley, the deputy chairman of Phillips, New York continues to bring high-quality artworks to the market, a tradition that has contributed to its sustained success. Recent research supports this notion, revealing that while the global art market has experienced minimal growth, the US market, particularly in New York, has quietly but noticeably expanded. The value of the US art market alone has increased by 50% over the past ten years, with the United States now accounting for nearly half of the global market share.
Several factors have contributed to New York’s robust art market. Clare McAndrew, an economist and author of “The Art Market 2023,” highlights the city’s strong domestic market, characterised by a broad base of wealthy collectors. Moreover, New York serves as a centre for international trade, attracting global buyers and sellers. The perception of New York as a place where high-value artworks sell for premium prices has become a self-fulfilling prophecy, driving further growth in the market.
New York’s art market is bolstered by the city’s financial sector, which is home to numerous wealthy individuals and institutions with a keen interest in art investment. Wall Street, with its abundance of hedge funds, private equity firms, and wealthy financiers, has provided a stable source of capital for the art market. The financial industry’s involvement has also contributed to the development of art investment funds, art lending services, and the securitisation of artworks, further fueling the growth of the market.
US artists have played a significant role in the growth of the global art market. Prominent artists such as Andy Warhol, Jean-Michel Basquiat, Mark Rothko, Willem de Kooning, and Cy Twombly have consistently achieved high prices at auctions, with their works accounting for a substantial portion of sales. American artists’ dominance extends to younger generations as well, with artists born since 1977 representing a significant share of sales at auction. Their success further solidifies New York’s position as a thriving art hub.
The influence of American artists can be attributed to a combination of factors. The United States has a rich history of artistic innovation and cultural output, fostering an environment that encourages artistic expression and experimentation. The diversity and multiculturalism of American society have also contributed to a vibrant and eclectic art scene. Additionally, the global reach of American popular culture, through movies, music, and other media, has helped create international recognition and demand for American artists.
Furthermore, New York’s art schools and institutions have played a crucial role in nurturing and showcasing American talent. The city is home to prestigious art schools such as the School of Visual Arts, Pratt Institute, and the New York Academy of Art, which attract aspiring artists from around the world. New York’s renowned museums, including the Museum of Modern Art (MoMA) and the Whitney Museum of American Art, provide platforms for American artists to exhibit their works and gain recognition. These institutions not only preserve and display art but also actively contribute to the development and promotion of American art.
Commercial galleries have also contributed to the growth of the art market, particularly at the upper end. A small number of galleries worldwide, with exhibition spaces in multiple locations, including London, Paris, and New York, have reported significant growth. The presence of these galleries in New York has attracted collectors and facilitated the sale of the most expensive fine art across various genres. In 2022, New York accounted for 68% of sales by value for Sotheby’s, Phillips, and Christie’s in categories such as Old Masters, Impressionist, modern, and contemporary art. These galleries not only provide a platform for artists to showcase their works but also act as intermediaries between artists, collectors, and institutions.
The concentration of commercial galleries in New York creates a vibrant ecosystem that fosters the exchange of ideas, collaboration, and networking within the art community. Galleries play a crucial role in discovering and nurturing emerging talent, providing them with exhibition opportunities, and connecting them with potential buyers and collectors. The presence of established galleries also lends credibility and prestige to the artists they represent, making it easier for them to gain recognition and command higher prices for their works.
Furthermore, the growth of online art platforms and digital marketplaces has expanded the reach of New York galleries beyond geographical boundaries. These platforms enable collectors from around the world to access and purchase artworks from New York-based galleries, further fueling the city’s art market.
New York’s position as the art capital of the world is strengthened by its cosmopolitanism, liberalism, and cultural infrastructure. The city’s rich history in nurturing the arts, its diverse population, and its status as a global cultural destination contribute to its appeal to both international and American audiences. Unlike other art hubs facing challenges such as Brexit’s implications in London or the impact of China’s authoritarianism in Hong Kong, New York has remained resilient and has actively reduced bureaucratic barriers in the art market.
The city’s cultural infrastructure is unparalleled, with an abundance of world-class museums, galleries, and cultural institutions. Besides MoMA and the Whitney Museum of American Art, New York is home to the Metropolitan Museum of Art, the Guggenheim Museum, the New Museum, and numerous smaller galleries and exhibition spaces. These institutions not only attract visitors but also provide artists with opportunities to exhibit their works and engage in dialogue with curators, critics, and fellow artists.
Moreover, New York’s art scene benefits from the presence of renowned auction houses such as Sotheby’s, Christie’s, and Phillips. These auction houses hold high-profile sales and provide a platform for artworks to reach global markets. The auction house model, with its competitive bidding and public sales, generates excitement and publicity around artworks, further driving their value and market demand.
Additionally, New York’s art fairs, such as the Armory Show and Frieze New York, attract art enthusiasts, collectors, and professionals from around the world. These events not only showcase a diverse range of artworks but also create opportunities for networking, collaboration, and business transactions. The city’s vibrant and dynamic art scene extends beyond the traditional gallery and museum spaces, with street art, public installations, and performance art contributing to its cultural landscape.
New York’s enduring dominance in the global art market is a testament to its cultural infrastructure, international appeal, and sustained growth. The city’s ability to attract high-quality artworks, its strong domestic market, and its reputation as a hub for international trade have contributed to its success. American artists, both established and emerging, have played a crucial role in driving the market forward, while commercial galleries and auction houses have facilitated the expansion of the market. New York’s unique cultural infrastructure, coupled with its cosmopolitan and liberal environment, sets it apart from other art hubs. Its ability to adapt to changing times, strip away red tape, and foster a vibrant art community has allowed it to weather economic turbulence and maintain its position at the forefront of the art world. As the art market continues to evolve, New York’s influence is likely to persist, attracting collectors, artists, and art enthusiasts from around the globe. Its rich artistic heritage, dynamic market, and supportive infrastructure make it an unrivaled destination for those seeking to engage with the art world.
The data and analysis for this article were generated by ArtTactic, a research firm based in London.
Feature Image Courtesy: Apollo Magazine
