The National Kitchen and Bath Association (NKBA) has revised its 2020 residential kitchen and bath spending forecast upwards based on improving demand fundamentals in both the new construction and repair and remodeling end-market. According to NKBA Living Impacts Design study:
- Spending on residential kitchen and bath products will now decline 6.1% in 2020 from $148.1 billion in 2019 to $139.1 billion (compared to our previous expectation of -11.7%). It will be driven by a 3% decline in new construction spending and a 9.7% drop in kitchen and bath remodeling.
- Although spending will decline in 2020, record-low interest rates are driving significant demand in the new home market and shifting lifestyles are inspiring more DIY activity, both of which are helping to offset a general shift to lower price points and smaller-scale kitchen and bath remodels.
- The kitchen and bath remodeling industry continues to be impacted by project postponements and cancellations as of mid-August, well after state-wide stay-at-home orders ended. The industry reports safety concerns, lack of available professional remodelers, rising project costs and othe financial/budgetary concerns as the primary reason for postponing or canceling their remodeling project.
- One in two households remain optimistic about resuming their previously deferred project yet this year, while 30% say they plan to resume their postponed or canceled project at some point next year.