The design and remodeling industry is performing well, according to the latest Kitchen & Bath Market Outlook from the National Kitchen & Bath Association (NKBA).
According to the organization’s revised 2021 industry sales projection, the industry can expect $170.9 billion in kitchen and bath spending—up 8% from the initial estimate for the year.
The takeaways:
– Kitchen and bath spending is forecast to exceed 2020 sales by 28.5%
– Bathroom spending should rise by 22.3% in 2021, sparked by gains in new construction
– Kitchen spending will increase by 20.4%, incentivized by strong gains in remodeling
– High-end spending is expected to outperform low- to mid-ranges, increasing by over 28% YoY
– Nearly one in three homeowners plan to increase their home improvement spending
– The average home improvement price point is 25% higher than last year
– Kitchen and bath remain popular reno choices, with exterior, patio/deck and primary bedrooms following them up, according to the NKBA survey.
Additional insights:
“This update is very encouraging and confirms the ongoing robust performance of the design and remodeling industry,” said Bill Darcy, NKBA CEO. “This very strong sales forecast is attributable to pent-up demand for new home construction, easing COVID disruptions and a sea change in consumer behavior. People will continue to work from home in some capacity, fostering renovation of their space to meet their evolving needs. A tight inventory of homes for sale is also encouraging homeowners to stay put and renovate. That’s all good news for our industry.”
