NKBA Projects Kitchen and Bath Spending Will Skyrocket
The National Kitchen & Bath Association has revised its spending projections for 2021.
The National Kitchen & Bath Association (NKBA) revised its 2021 industry sales projection upward to $170.9 billion in its July update to the Kitchen & Bath Market Outlook, an increase of 21.4 percent from the 2020s $140.8 billion in kitchen and bath spending and nearly 8 percent higher than the initial estimate for the year.
As builders try to keep up with high demand, new construction K&B spending is expected to outpace 2020 by an impressive 28.5 percent. Meanwhile, K&B remodeling is expected to increase by 12.5%.
The update provides a comprehensive review of current industry conditions as well as macroeconomic factors that are likely to impact business, such as consumers opening their homes to workers’ post-pandemic and stimulus checks.
“This update is very encouraging and confirms the ongoing robust performance of the design and remodeling industry,” NKBA CEO Bill Darcy stated.
“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 roadblocks: home prices continue to rise, and the cost of building materials remains high, excluding some potential buyers from the market; employment hasn’t fully recovered to pre-pandemic levels, and supply-chain disruptions continue to delay jobs and make product sourcing difficult.
“But most indicators suggest the thriving K&B market will continue,” he continued.
Kitchen and bath spending should increase by double digits in the industry.
This is a reversal from the industry’s 3.8 percent decline in 2020, which was driven by an 8.6 percent loss in remodeling and a 0.5 percent increase in new construction during the pandemic.
Bathroom spending will rise by 22.3 percent in 2021, fueled primarily by gains in new construction, while kitchen spending will rise by 20.4 percent, fueled primarily by stronger gains in remodeling.