About 30% of homeowners plan a major remodeling project this year, with nearly 60% of all home-improvement dollars earmarked for kitchen and bath.
By Robert Isler
There’s a lot of cash piling up in many American households — and it’s burning a hole in homeowners’ pockets.
Total U.S. household savings in 2020 were significant, with spending down by $600 billion nationally. This was largely forced savings, because many traditional areas in which to spend disposable dollars were off limits due to the pandemic. Now that most COVID-19 restrictions have been lifted, many feel a sense of freedom and a desire to make up for lost time. So where are they putting their money this year? According to the July update of NKBA’s 2021 Kitchen & Bath Market Outlook, categories such as dining in/take-out, entertainment and travel are near the top of the list, with 17% to 20% of homeowners saying they plan to increase spending for each. That’s no surprise. However, topping the list — by far — are the 30% who plan increases for home improvements this year. That is a bit of a surprise.
Drilling down, among those who will step up their 2021 spend on remodeling, 37% expect to hire a pro, while an additional 32% plan a major DIY project. In other words, 69% plan significant improvements. Additionally, kitchen and bath will represent 57% of the total household home-improvement budget for 2021, with kitchens and primary baths ranked #1 and #2, respectively, for remodel plans. They’re followed by exteriors, decks/patios and primary bedrooms. Not only do kitchens top the list, but the average spend on them will be 25% higher than last year.
Additionally, kitchen and bath will represent 57% of the total household home-improvement budget for 2021, with kitchens and primary baths ranked #1 and #2, respectively, for remodel plans.
So, what are the key motivations behind a K&B remodel? Improving a home’s aesthetics tops all others, cited by 86% of respondents. Just behind, at 85%, is increasing the home’s durability. Repairing worn or broken features, at 75%, and increasing the feeling of relaxation in the home, at 69%, are next. Of interest, hot topics — sustainability, smart home and wellness features — were further down on the list, mentioned by between 43% and 46% of respondents.
Other factors cited by fewer than 40% of respondents but still significant because of their ties to the pandemic include the need to increase safety, privacy or access to the outdoors, or to increase space for additional residents or for a home office.
There were a couple of specific qualities that registered as the biggest draws for a kitchen or bath remodel. They include durability and an attractive style or design, at 20% and 19%, respectively. Quite surprisingly, non-physical features, like low cost, excellent customer service and guaranteed timely delivery, are much lower on the list. Each was cited by under 10% of homeowners.
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