Los Angeles is one of the world’s most dynamic art markets. Even New York and European galleries viewed LA as fertile ground for expansion. But now, as the art world tightens its belts, LA’s gallery scene is witnessing an alarming wave of closures.
Over ten galleries have shut their doors since early 2023. As rumors of more closing spread, the allure of LA as an art mecca has started to wane.
Too Much, Too Fast
Just a few years ago, LA appeared primed for an art boom. Iconic names like David Zwirner and Hauser & Wirth set up shop and sparked hope for a West Coast Renaissance. Smaller, ambitious galleries followed suit, drawn by the city’s blend of cultural prestige and new collectors.
However, Amir Falah, an artist who witnessed these changes, had reservations about the gallery boom. “The writing was always on the wall,” he noted. Posting on Threads, he observed that many galleries had expanded too quickly and raised prices for young artists. Short-term gains were prioritized over long-term growth.
Falah argues this approach led to an unsustainable bubble that is now beginning to burst. “Growing too fast,” he said, “doesn’t benefit the artist or the galleries in the long run.”
The Pandemic Boom – and Bust
The pandemic fueled a surge in online art buying, particularly from new collectors who made fortunes in cryptocurrency and NFTs. As crypto markets cooled, so did the frenzy for contemporary art, hitting Los Angeles galleries hard. “Everyone stopped buying at the same time,” explained Dimitri Lorin, owner of the now-closed Lorin Gallery.
He tried sustaining his gallery with art fairs and international clientele, but sales dried up. “After months and months of zero sales, we decided to close both spaces,” Lorin shared from Portugal, where he has since relocated.
The demand from Asia that once fueled many galleries’ pandemic success has diminished. These international collectors are necessary for LA galleries to rely more heavily on local buyers who may not have the resources or inclination to keep the market afloat.
Galleries that depended on pandemic-era collectors felt the swift, painful impact of the slowdown. Stefan Simchowitz, a prominent dealer who controls multiple spaces in the area, estimated that top-tier galleries are seeing revenue declines of 25% while some smaller galleries are down as much as 70%. “You’re seeing a contraction across town. Business is bad,” he remarked.
A City’s Art Scene in Flux
As sales slow, some galleries are rethinking their entire business models. Bill Powers, the founder of the Half Gallery in New York, has suspended his LA programming until next year, emphasizing that “part of the reset right now is refocusing solidation.” For many, the days of “sold-out shows” are over.
For out-of-town galleries, this has been a particular struggle. Allegra LaViola, who opened a Los Angeles gallery in early 2023, soon found that balancing life between coasts was more taxing than anticipated. “It’s just a lot, personally and physically,” she shared, noting that most of her sales weren’t to local collectors. Like others, she is now questioning whether her LA venture is sustainable.
The Start of a New Chapter
The changes LA’s galleries were experiencing reflect broader shifts in the global art market. Consolidation, recalibration, and survival are now the names of the game. The road ahead may be challenging for LA dealers, but if the city’s history indicates, the art scene is far from finished.
The city remains a cultural hub with potential, albeit one that may require a more measured approach to growth. For some, the downturn offers an opportunity to reevaluate priorities by placing artistic integrity or financial ambition.
Carly Packer, a gallery owner operating through pop-up exhibitions, reflects on the shift. “I work with artists and sell artworks whether I’m in my living room or a gallery,” she said, determined to continue, but on her terms.
