Design has become an increasingly popular investment category in recent years. With the rise of online sales platforms and demand for unique home decor, prices for rare and coveted design pieces have skyrocketed. This has led many investors to consider design as an alternative asset class. When approached strategically, design can generate substantial returns over time. However, this market also carries risks that need to be carefully evaluated. In this article, we will explore the key factors driving growth in the design investment market, assess the risks and opportunities, and provide actionable tips for those looking to invest in collectible design.
Surging demand for mid-century and vintage furniture
The mid-century modern design movement produced many iconic pieces of furniture in the 1940s-60s that are highly coveted today. Danish teak furnishings by designers like Hans Wegner and Arne Jacobsen can fetch five or six figure sums at auction. The works of Charles and Ray Eames, known for sleek molded plywood and leather designs, are also very valuable. The Mad Men era sparked renewed interest in atomic age and sputnik-style decor. Platforms like 1stDibs and Chairish have exposed vintage design to a global audience. As more people decorate with eclectic mixes of modern and antique furnishings, demand continues to rise.
Online marketplaces expanding the design collector base
Whereas design collecting was once dominated by elite dealers and auction houses, online platforms have made the market more democratic. Sites like Artsy and Pamono allow users to browse museum-quality works with ease. Boutique dealers that specialize in styles from Art Deco to Postmodernism also showcase their inventory online. This exposure has led new demographics like millennials to enter the collecting arena. While top-tier works still sell for seven figures at Christie’s and Sotheby’s, the expanded collector base has increased prices across lower price segments as well.
Pop culture and social media hype up collectible design
Television shows like The Marvelous Mrs. Maisel have introduced Mid-century Modern style to wider audiences. On Instagram, influencers mix vintage finds with new pieces in photogenic interiors. Some designers, like the Campana Brothers in Brazil, have even developed cult followings online. When celebrities auction their personal collections, it further stokes interest from fans. Social media buzz can prompt speculation around certain designers and unusual items. This hype premium can inflate prices and introduce volatility though.
Limited supply and materials scarcity apply upward pressure
For many collectible designers, a limited number of works exist. Some production runs were short, and other pieces have been lost to damage over the decades. As global demand rises, this shrinks supply for top specimens even further. Some materials used in Mid-century designs like Brazilian rosewood are now endangered. Current materials costs and labor-intensive production techniques also make replacing collectible furnishings challenging. All of these structural supply constraints make existing collectible items more scarce.
Factors like condition and provenance determine values
Within any category of collectible design, values can fluctuate widely depending on individual attributes. Condition is paramount, with restoration lowering value in most cases. Marks, signatures, and other hallmarks of authenticity also command premium prices. Provenance establishing history of previous ownership and public exhibition can multiply an item’s worth as well. Understanding how to accurately assess these variables is crucial when buying design as an investment.
The design market offers intriguing opportunities but requires expertise and thorough evaluation. As luxury spending rebounds post-pandemic, the top end of the collectible design market looks poised for continued growth. However, downward price pressures also exist. Investors must carefully research category trends, verify authenticity, and secure pieces in excellent condition in order to maximize their potential returns.