Report Price: $1995
This NKBA Research Report is included with NKBA Membership. Log in to access the report.
NKBA’s 2020 Kitchen & Bath Market Outlook report provides a thorough and objective assessment of the U.S. residential kitchen and bath industry and reviews the housing industry factors and consumer preferences and behaviors impacting 2020 industry growth. This research report provides market size estimates and forecasts for kitchen spending and bathroom spending, as well as estimates for new construction spending and remodeling spending. The data presented in this report is compiled from a variety of sources – U.S. Census American Housing Microdata, National Apartment Association (NAA) Spending, National Association of Realtors, Moody’s Analytics, Home Innovation Research Labs (HIRL) data, and home improvement estimates and forecasts from John Burns Real Estate Consulting. In addition, a survey was conducted among 2,500 consumers to determine the amount homeowners typically spend on kitchen and bath remodels, to identify the top upgrades consumers are making in their kitchens, master bathrooms and guest bathrooms, and to analyze and forecast the impact of outdated home design on kitchen and bath remodeling behavior.
Among those consumers who recently completed a kitchen or bath remodeling project, 17% hired a designer and 83% did not. Those who used a designer reportedly spent an average of $10,000 more than those who did not.
Key Takeaways
- Residential kitchen and bath spending will accelerate in 2020, increasing from $148 billion to $158 billion, or 6.9%. It will be driven by 8% growth in new construction spending and 5.7% growth in kitchen and bath remodeling.
- Kitchen and bath spending is expected to be particularly strong in the first half of 2020 due to the strong sales of new homes in the 4th quarter of 2019.
- Of the total $158 billion, $76 billion represents residential kitchen spending (48%) and $82 billion for bathroom spending (52%).
- Low- and mid-priced kitchen and bath product spending will increase the fastest, driven by growth in entry-level housing, rental spending and first-time home buyers.
- Homeowners primarily fund their kitchen or master bath remodel with cash from their savings (62%). Only 10% report that the primary method used to pay for their remodel was a credit card.
- Outdated designs and an aging stock of homes 40+ years old will boost kitchen and bath spending.
- Kitchen and bath remodel motivations and challenges differ by life stage of the homeowner.