NKBA report predicts 16 percent growth in residential kitchen and bath remodeling
February 3, 2021 | 10:40 am CST
Chicago Kitchen Remodeling

HACKETTSTOWN, N.J. — The National Kitchen & Bath Association released its 2021 Market Outlook report. The report shows the industry is poised for continued growth with overall spending for both kitchen and bath projects to increase in the coming year.

The industry anticipates a pronounced rebound in overall industry growth-from a decline of 5.9 percent in 2020 to growth of 16.6 percent in 2021, compared to 9 percent in 2018 and 1 percent in 2019.

Homeowners cite the kitchen and bath areas as two times more important than other spaces within the home, and the kitchen particularly gained status throughout the COVID-19 pandemic, with 70 percent of homeowners considering it extremely important compared to 64 percent prior to the crisis.

With a renewed focus on these rooms, the industry projects a tailwind of big interior projects, including indoor kitchen remodels. This year may see a shift from the DIY boom of 2020 toward jobs that require a kitchen and bath professional, many of which may have been postponed by homeowners during the pandemic, due to health-risks associated with having someone inside the home.

“After such a strong year for home remodeling in 2020, some wondered if we were approaching a home improvement spending ‘cliff.’ We’re pleased to say that’s not what the kitchen and bath market is expecting in 2021,” said Bill Darcy, NKBA CEO.

“Last year, homeowners started the work of improving their living spaces with DIY projects. And this year, with early distribution of the vaccine and other measures to reduce the public health impact of the virus, we expect to see continued renovations and more projects requiring our members.”

The study saw a number of project motivators and inspirations that continue to drive renovations:

-- Households indicate that improving the home’s aesthetics are the main motivators for remodels in the bathroom (16 percent) and kitchen (15 percent), followed by maximizing quality and durability, and increasing the value of the home.

-- Homeowners completing budget-friendly bathroom remodels focused on updating cabinets (52 percent of projects) and plumbing (43 percent of projects).

-- Google searches and social media are the primary inspiration for kitchen and bath remodels. Households frequently indicate that they rely on more than one source to inspire a remodel. Young single homeowners or couples tend to more heavily rely on Google and Instagram, while mature adults (45+) put greater weight on other homes seen in person for inspiration.

Economic indicators that may impact remodeling activity include:

-- A 10 percent growth in single family residential construction starts in 2020 will lead to new construction dollarizing in 2021, driving a +17 percent growth in new residential building materials.

-- Spending on new construction represents 57 percent of the total residential kitchen and bath spending at $90.0 billion. Residential remodeling makes up 43 percent at $68.6 billion in spending.

NKBA commissioned the consulting firm John Burns Real Estate Consulting to field the study. See http://nkba.org

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About the author
Karl Forth

Karl D. Forth is online editor for CCI Media. He also writes news and feature stories in FDMC Magazine, in addition to newsletters and custom publishing projects. He is also involved in event organization, and compiles the annual FDM 300 list of industry leaders. He can be reached at karl.forth@woodworkingnetwork.com.