The American art market is experiencing a period of significant upheaval as several prominent galleries have announced closures and major industry events have been canceled. In just a few weeks during what is typically the quiet summer season, four influential U.S. galleries revealed they would cease operations in their current forms, while the Art Dealers Association of America canceled its annual October art fair.
Tim Blum shuttered his influential namesake gallery after three decades in business, while Adam Lindemann closed his heavyweight gallery Venus Over Manhattan. Olivier Babin confirmed the end of CLEARING, his tastemaking gallery that rose from a brick-and-mortar space in Bushwick to international acclaim. Meanwhile, Chelsea stalwart Kasmin closed its doors after 35 years to make way for Olney Gleason, under the leadership of Nick Olney and Eric Gleason, who had been running the gallery since founder Paul Kasmin's passing in 2020.
Each closure reflects unique circumstances rather than a single underlying cause. The decisions represent various factors including evolution in business models, crushing overhead costs of multi-city operations, and simple fatigue with the pace and pressure of the business. "Galleries are very personal enterprises—each decision to close is a story in itself," Lindemann told Artsy. "They get grouped into 'the galleries are closing, the galleries are opening,' but each one's a little different, but they're all ego-driven and nobody wants to close. But every gallery in the world will eventually close. The only question is when."
These developments come during a very public moment of introspection for the art industry. Publications from the Financial Times to Hypebeast are asking fundamental questions about the current state of the art market. Industry professionals are questioning whether the pace of exhibitions and events is sustainable for galleries, where new art buyers will come from, and whether the gallery system itself is fit for purpose in its current form.
This isn't the first time the American art industry has faced such a period of soul-searching. In the early 1990s, a sharp recession caused what Time magazine described as "the great massacre of 1990." Similar periods of turmoil occurred in 2008, when around two dozen New York galleries closed according to the New York Times, and in 2016, when more than a dozen galleries in the city shuttered within 18 months.
The aftermath of the 2008 financial crisis led to several significant shifts in the market. Recovery was driven by global diversification, particularly in Asia and the Middle East, while art fairs became crucial sales hubs. The crisis also accelerated early digital experiments such as Artsy and strengthened art financing through auction guarantees and art funds. These changes not only stabilized the market but also laid groundwork for innovations that defined later downturns, including widespread adoption of virtual sales during COVID-19 and the rise of NFTs.
Today's market conditions, while not as severe, show some similarities to previous downturns. The U.S. market is in a recognized slump, with top-level auction and dealer sales declining for consecutive years as collector demand has cooled. "Some people who bought 200 works a year now buy 40," CLEARING's Babin said. "That's an 80% drop, but it's still substantial. There was a lot of fluff."
For American galleries, this softening coincides with rising business costs—a persistent factor affecting galleries in districts such as downtown New York for several years. "Since the pandemic, overhead and the cost of operating have effectively doubled," art adviser Alex Glauber told Artsy. "Sustaining cash flow and covering overheads month to month, that number has gotten bigger, and the inflow of cash has gotten smaller."
This context explains why the Art Dealers Association of America decided to postpone its 2025 fair, according to director Kinsey Robb. "The last six months have really been a period of extraordinary change in the art world at large," Robb said. "We've watched some restructuring of federal and private funding for arts institutions. We've seen policy headwinds from tariffs to legislative proposals reshaping the terrain. And we've watched galleries close, rebrand, merge, etcetera. For the ADAA, this has been a moment to take stock—to ask what works—what must evolve."
Lindemann decided to close when he felt his gallery could no longer provide what he wanted for clients and artists. "A gallery is something that needs continuity," he said. "When I could no longer provide that continuity, [I closed]. Good galleries have to support their artists and their markets, and that requires a lot of mojo."
For others, this moment presents an opportunity to reconsider fundamentals. As Kasmin transitions into Olney Gleason, its figureheads want to slow the pace and refocus. "There's been a large focus on a lot of extraneous elements of our industry for the last many years," Gleason told Artsy. "Whatever correction has happened, this has realigned a lot of things we've kept all along, such as maintaining a very strict focus on our artists."
Many collectors are also taking time to reconsider their approach. Collector Jeff Magid observes that much of the art world feels closed off to new buyers, offering few entry points. This perceived insularity has left even established collectors wary while sidelining potential new participants. Just 17% of collectors surveyed in Artsy's Art Market Trends 2025 report said the art market meets their needs.
"Earlier crises were mostly economic," noted Babin. "This one feels more like a shift—cultural habits, psychological changes, how people want to spend not only money but time and energy."
Despite the challenges, several bright spots exist. Emerging artists—those in earlier stages of their professional careers—and works at lower price points are seeing increased interest amid the wider market downturn. "We just need more opportunities and welcoming scenarios with good art at reasonable prices, and people will want to buy," Magid told Artsy.
Many view this period as presenting significant opportunities. "This is a chance to reevaluate and course-correct," said Glauber. This could mean refocusing for many in the gallery sector, stepping away from expensive endeavors and homing in on new buyers. "The next step is probably some more thoughtfulness put in," Olney said. "Finding an equilibrium between being incredibly active and making sure you're doing everything for a reason—focus on the exhibition, focus on artists' career building—is where we see galleries going."
Gleason describes the current situation plainly: "We are in the midst of a generational shift. Wonderful galleries that have been around for decades are slowing down, and there's going to be a new generation of dealers and gallerists—we hope to be leaders amongst that cohort."
While many are discussing challenges, the reality appears more nuanced than simple decline. The art world has faced similar questions before and demonstrated remarkable resilience. "The art world has an enormous capacity for reinvention," said Robb. "We're all creative. We're representing creatives. We're creative in our own ways. This is an opportunity for some exciting change to take shape."
