Description
The National Kitchen & Bath Association has just completed a second revamp of its annual Market Outlook report. It reflects the latest impact of COVID-19 on the industry as well as on the overall economy. The report provides a thorough assessment of the U.S. kitchen and bath industry, including a gauge of current market size and a forecast for the entire year. NKBA commissioned the John Burns Real Estate Consulting firm to conduct the study. They used a variety of government and industry sources, internal forecasting models, and a survey of over 1,000 consumers involved in or considering a kitchen or bath remodel to arrive at their findings.
Takeaways:
Full year K&B revenues have been revised upward to $139 billion, just 6% below 2019 and a solid improvement over the 11.7% shortfall expected in the previous revision.
New construction is forecast to be down by 3% full year, with remodeling to drop nearly 10%.
By remodel type, almost all of the shortfall will come from kitchens, which are projected to be off by 12% vs. under 1% for bathrooms.
DIY projects have been rising, representing 35% of all projects in Q2, up from 25% in Q1.
Additional topics covered:
Impact of COVID-19 by project size (low-end, mid-range, luxury)
Consumer usage of designers during the pandemic
Housing industry trends that affect K&B
COVID-19 and project spending
Current consumer K&B project motivations and obstacles
Big ticket vs. small ticket item upgrades
