Issue #00005 : December 18th, 2025

Happy Thursday dear readers.

Time to exhale… this is a slow news cycle, but Mr. Thread will always dig and find design news for you, even next Thursday.

It’s nearly a year since the 2025 Los Angeles wildfires, and I remember watching it on the news—seeing all that brilliant design go up in flames. I've been involved with hundreds of projects in LA over 30 years. The city is one of the legacy hotspots of architecture and interiors in the USA. Roughly 16,000 buildings were destroyed, many of them luxury homes whose owners are desperate to rebuild. Today, only 1,900 permits have been issued according to realtor.com—that’s 12% of what's coming.

Pacific Palisades saw 6,000 properties wiped out, and by October, just 230 were under construction. Now it’s getting ugly: homeowners packed LA City Hall last week, some breaking down in tears as council members postponed—again—a vote on waiving reconstruction fees. “It was so devastating to see how incompetent our city is,” said Jessica Rogers, president of the Pacific Palisades Residents Association. Meanwhile, local brands like Kitson are using viral sidewalk ads to expose city politicians’ empty promises.

Many of these fire-damaged properties now have insurance money behind them and wealthy homeowners plan to rebuild bigger and better, as soon as they can get a permit rubber-stamped. I even know of a French upholstery workroom opening shop in LA in anticipation of the boom. Sounds cruel to talk about profiting from disaster, but it's smart business. Politicians need to cut the red tape. When the bottleneck breaks, this will be the biggest residential design boom in decades.

Keep reading to find out why house-flipping is over, why New York artists are hosting exhibitions in U-Haul trucks, and why a Middle-Eastern hotel is planting a massive plane on its roof.

Home flipping blues.
This week I came across a Wall Street Journal article with a blunt message: home-flipping is too hard these days. The story profiles Paul and Tanice Myers, a husband-wife duo who have bought and sold 500 homes over 15 years. They get a thrill out of buying rodent-infested wrecks, renovating, and selling for a profit. But the reality is house-flipping is getting brutal. It accounted for only 7.6% of all U.S. home sales in 2024, down from previous years. The article details all the ways flips go wrong: repairs take longer than predicted, hidden problems emerge, markets turn sour mid-renovation. Now high mortgage rates, choosy lenders, rising material costs, and low inventory have made it impossible. Even the Myers family are scaling back.

This is a blow for me. Ever since I read Michael Ovitz’s book, I imagined myself in retirement flipping homes at the super-luxury level. Ovitz’s mastery of deal-making inspired me to imagine myself at the helm of a dream team—architect, designer, real estate expert, builder, money guy—equal partners running a systematic high-level operation. It’s still a dream, and for bold designers who can partner smartly, I believe the opportunity is there. But unless you enjoy the risk of watching your savings evaporate into stucco and shiplap, it’s wise to stay out.

The world’s richest families—and why none of them are in our industry.
Bloomberg just released its annual ranking of the world's wealthiest dynasties, and the numbers are staggering: the top 25 families are collectively worth $2.9 trillion, up $358.7 billion from last year. The Waltons top the list at $513.4 billion thanks to their 44% stake in Walmart. The list spans retail, luxury goods, mining, pharmaceuticals, and energy empires—but scan the entire ranking and you won't find a single family fortune built on furniture or interior design. As RH noted in last week's earnings report, we operate in "the largest, most fragmented" industry in the U.S. Translation: no one has cracked the code to scale design and home furnishings into dynastic wealth. 

The Hermès family is worth $184.5 billion selling saddles? The Mars family commands $143.4 billion with candy bars and pet food. Meanwhile, our industry remains splintered across thousands of independent studios and showrooms. Consolidation will inevitably hit our business. You see it with Sutherland and Holly Hunt where outside investment has already come in. Both brands have maintained their essence, but only because of the massive legacies left behind by their eponymous founders. My greatest fear is that private equity will start consolidating our industry, and, in the name of cost-cutting, rip the soul out of what makes us special: the artisanal, cottage, mom-and-pop nature of the business. Fragmentation is our reality—but it's also our opportunity.

Eye on the markets.
Stock market news is quiet this week too. That said, it was a rocky week for Zillow. Shares dropped over 11% on December 15 due to fears of Google testing real estate listings, intensifying competition concerns.

The rise of ‘just bring your toothbrush’ real estate.
The Wall Street Journal reports a growing trend at the high end of interiors: buyers purchasing homes with everything inside—dishes, linens, artwork, and furniture. Interior designer Susan Lin just sold her Fort Lauderdale home for $4.35 million plus $175,000 for contents after a buyer made three offers.  Charlotte Moss just listed a $5.595 million Virginia spec home with $800,000 worth of curated contents available. One Miami condo with distinct geometry sold for $18.8 million—furniture included because it was integral to the space. More than 50% of luxury sales in the Berkshires now include furnishings, up from 25% pre-Covid, according to broker Steven Weisz. The trend hits hardest in second-home markets where buyers demand convenience. Here’s an idea for designers with some moxie: try and get involved with these “whole home” deals. Work with home builders to furnish properties for the ready-to-move-in market. Make deals with brands to include their products, film the process, and you have multiple revenue streams flowing at once.

The Hall of Fame returns to the Waldorf
New York’s design world packed the newly restored Waldorf Astoria on Dec. 10 for the 41st annual Interior Design Hall of Fame Gala. Over 1,000 creatives showed up to honor four inductees whose work has reshaped the discipline: Héctor Esrawe, founder of Mexico City's Esrawe Studio, renowned for material-rich spaces and cultural depth; Marion Weiss and Michael Manfredi, the Weiss/Manfredi co-founders whose hybrid approach blurs architecture, landscape, and art; and Pierre-Yves Rochon, the French hospitality design titan behind some of the world's most iconic interiors, including the Waldorf itself. The restored Waldorf Astoria felt like part of the guest list: a century-plus icon reborn through meticulous architecture and design.

Interior Design Editor-in-Chief Cindy Allen helmed the evening, weaving the hotel's storied past into a reminder that design exists where life actually happens. Allen has spent two decades leading Interior Design magazine with real flair—she's one of the great advocates of our industry.

Allen also paused to remember Robert A.M. Stern, Bruce Bierman, Amy Lau, Olle Lundberg, and Frank Gehry. Sad to see some of my friends on that list. That's what happens when you're in the industry for 30 years—these lists become more personal.

Truthfully, I feel like these events used to be a much bigger deal, but with the watering down of media and the reshaping of power in our industry, they don't carry the weight they used to. That doesn't take away from the fact they still honor the best of the best. Mr. Thread’s take: the strongest work arises from knowing where we started.

New York’s creative exodus accelerates.
The New York Times reports that NYC’s artist population grew 35% between 2004 and 2019, then dropped 4% since. Nearly 50 arts venues have closed in five years. Dancers, fashion designers, graphic designers, are all fleeing as the cost of living soars. One painter, priced out of gallery space, resorted to curating art shows in rented U-Hauls for $1,500—a workaround that's become a symbol of the affordability crisis.

This isn't just about starving artists. The broader creative economy depends on this ecosystem—and interior design is no exception. So many designers move to New York to make it in this industry. The city has one of the strongest design cultures in the country, and designers pay a steep price for that privilege. The projects here are more interesting than perhaps anywhere else in the world.

But that also attracts the most competition. Within 50 miles of NYC, there are 4,449 design professionals listed on Houzz alone. I can't tell you how many brilliant designers I know who can't land new projects. It's feast or famine, which is why the designers who survive understand what I've always preached: business acumen and creative talent must work in harmony. One without the other is a death sentence. And it’s true what they say: If you can make it here, you can make it anywhere.

Charleston becomes the South's design power player.
Creatives fleeing NYC would do well to consider Charleston, South Carolina. The Charleston Design District just added Stark to a roster that already includes Schumacher, Kravet, and Holland & Sherry—all opening showrooms in the Navy Yard Charleston redevelopment. Stark's CEO Chad Stark called Charleston "one of the country's most dynamic design destinations where heritage, craftsmanship, and modern luxury intersect."

Here's what's happening: while the Northeast hemorrhages creative talent over affordability, Charleston is building infrastructure that makes it easy for designers to work outside expensive coastal hubs. Schumacher's showroom features 7,000 fabrics. Kravet's workspace holds 20,000 SKUs. These are serious commitments.

The shift is undeniable: design commerce is decentralizing, and cities with lower costs and actual investment in trade infrastructure are winning. Charleston is building an entirely different model, and the brands are following the money. We've always done well there with my small artisanal company. Some years, the market rivals Atlanta. There's a deep concentration of some of the country's best design talent, including Cortney Bishop and Tammy Connor. Like New York and London, the Charleston community really values the art of interior design. Let's hope the growth continues. The more design centers we have promoting our industry, the better.

The art market roars back.
After a brutal two-year slump, the auction world just posted $13.2 billion in combined sales across Sotheby’s and Christie’s—up from $11.7 billion in 2024. According to the Wall Street Journal, the recovery is real: sellers finally stopped pricing like it was still 2022, buyers regained confidence, and suddenly everyone’s waving their paddles again.

The trophy art segment (pieces over $10 million) jumped 19.4% to $1.5 billion. Sotheby’s moved that record-breaking $236.4 million Klimt. Christie’s sold a $62.1 million Rothko. Seven people battled over a Lalanne hippo bar cart that was expected to fetch $10 million, with the winner bidding $31.4 million.

Here's the interesting bit: younger collectors under 40 now represent 25% of Sotheby's bidders, and they're not just buying paintings—they're chasing luxury goods, collectible cars, and novelty pieces with compelling backstories. The market's appetite has returned, and like they say, a rising tide lifts all boats.

The Venn diagram of art collectors and interior design aficionados is a single circle. They know beauty is good for the soul.

Q: What social media trend will dominate 2026?

A: The immediate future is in the hands of the best story tellers. We are moving into a place where followers want interesting takes based on personal perspective. In the design world, I would say find an authentic way to convey your process and expose a bit of your humanity. Be social — that’s always the key. It’s in the title. 

Q: Who is the most underrated designer?

A: This list gets longer every year for me. I feel the spotlight is due to shine brighter on smaller New York firms like Vaughn Miller and RUPP Studio, and Luke Havekes in Montreal. There is so much young up-and-coming talent out there revisiting the idea of inviting classicism into modern living, which I think will dictate who the real stars are in the next decade.

Q: What accessory or item of clothing do you wear everyday?

A: I don’t fancy myself a collector, but I definitely try to live with a defined style. I never take my watch off, a vintage Patek Philippe, it’s probably the only truly special thing I own. 

Q: Best cocktail in New York City?

A: New York has countless exceptional bars and bartenders, between Bemelman’s at The Carlyle, Monkey Bar, and Donohue’s uptown, but I stumbled into The Lions Bar in the East Village after a shoot earlier this year and had probably the best gimlet of my life — and that’s saying a lot because I drink quite a bit of them. Burger is top notch too.

Q: Best piece of advice anyone ever gave you?

A: My uncle, who was a major mentor in my early life, shared the line: “Live life like it’s rigged in your favor.” It terminates any space for anxiety, and fuels optimism in the face of setbacks. I believe it was Rumi’s.

Q: What’s one piece of social media advice that EVERYONE can learn from?

A: Not every post is a press release. Think less, post more. Try, fail, find the thing that your audience wants from you, and give them more of it. Evolve, advance, and always lean on authenticity. 

A customer filmed herself getting rejected at Hermès while trying to buy a Birkin—a perfect demonstration of the brand’s manufactured scarcity in action. This is why the New York Post is describing Hermès handbags as: “so scarce they’re beating gold, S&P 500.”

Dubai's new $775 million Emirates Air Hotel (opening 2029) will feature a full-size Airbus A380 permanently parked on the roof. This atrocious eye-sore will house a cockpit bar, dining areas, and glass-wing observation decks overlooking the city.

As reported by Fred Nicolaus of Business of Home, Schoolhouse seems to be on their last legs. Parent company Food52 just cut 75% of staff, most at the Portland brand it acquired in 2021. Brutal holiday timing for a whole-home company that once felt promising.

Thanks for reading… a presto!

Mr. Thread