In its July update to the Kitchen & Bath Market Outlook, the National Kitchen & Bath Association (NKBA) revised its 2021 industry sales projection upward to $170.9 billion, up by a substantial 21.4% from 2020’s $140.8 billion in kitchen and bath spending and nearly 8% higher than the initial estimate for the year.
New construction K&B spending is now expected to exceed 2020 by 28.5%, as builders attempt to keep pace with substantial demand. Meanwhile, K&B remodeling is expected to climb by 12.5%. The update provides a comprehensive review of current industry conditions as well as macroeconomic factors — such as consumers opening their homes to workers post-pandemic and stimulus checks — likely to impact business.
“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.”
Darcy cautioned, however, that there are a few bumps in the road: Home prices continue to rise, and the cost of building materials is still high — a combination that’s excluding some potential buyers from the market; the employment picture still hasn’t fully recovered to pre-pandemic peaks, and supply-chain disruptions continue to delay jobs and make product sourcing a challenge. “But most indicators suggest the thriving K&B market will continue,” he added.
The industry should see double-digit increases in both kitchen and bath spending. This is a reversal from the industry’s 3.8% decline in 2020, which was driven by an 8.6% loss for remodeling and stagnant growth of just 0.5% for new construction during the pandemic.
Bathroom spending will rise by 22.3% in 2021 and will be sparked mainly by gains in new construction, while kitchen spending will increase by 20.4%, led by stronger gains in remodeling.
For more information from the July report, click here.