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, a 21.4 percent increase from the 2020s $140.8 billion in kitchen and bath spending and nearly 8 percent higher than the initial estimate for the year.
The National Kitchen & Bath Association has revised its 2021 spending forecast.
As builders scramble to meet rising demand, new construction K&B spending is expected to outpace 2020 by an impressive 28.5 percent. Meanwhile, K&B remodeling is expected to rise by 12.5%.
The update provides a thorough examination of current industry conditions as well as macroeconomic factors that are likely to have an impact on business, such as consumers opening their doors to workers’ post-pandemic and stimulus checks.
“This update is very encouraging and confirms the design and remodeling industry’s ongoing robust performance,” NKBA CEO Bill Darcy said.
“Pent-up demand for new home construction, easing COVID disruptions, and a sea change in consumer behavior all contribute to this very strong sales forecast.” People will continue to work from home in some capacity, encouraging them to renovate their space to meet their changing needs. A limited supply of available homes for sale is also encouraging homeowners to stay put and renovate. All of this is good news for our industry.”
However, Darcy cautioned 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.
“However, most indicators indicate that the thriving K&B market will continue,” he added.
Spending on kitchen and bath renovations is expected to rise by double digits in the industry.
This represents a reversal of 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 increase by 22.3 percent in 2021, primarily due to gains in new construction, while kitchen spending will increase by 20.4 percent, primarily due to stronger gains in remodeling.
