It depends on what you mean by "high quality", I suspect. Above a relatively low floor, price of furniture seems unrelated to (e.g.) sturdiness or expected lifespan. It's more like fashion, in that you are paying for names or decoration.

This is exactly Baumol: If by “high quality” you mean “difficult to mass produce” then yes, the lack of productivity gains in hand-made furniture makes real costs go up.

Of course, it’s easy to mass produce sturdy furniture, such as office furniture. But it’s not what consumers think of as “high quality”.