Report Price: $1995
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The National Kitchen & Bath Association has just released its midyear Market Outlook Update report, and this is the final forecasting report for 2023. In this detailed report, NKBA provides an estimate of the current size of the K&B market (in U.S. dollars), 2023 forecasts based on updated data and learning through H1 2023, and a thorough assessment of how various economic and housing market trends are impacting the kitchen and bath industry. NKBA commissioned John Burns Research and Consulting (JBREC) to work with them to develop this research report. This analysis is based on data from various government and industry sources and JBREC’s own internal forecasting models.
Residential K&B spending is expected to decline by 5 percent in 2023.
Key Takeaways
- Kitchen and bath spending is expected to total $179 billion in 2023, a decrease of only 5 percent year over year. This is more positive than the decrease of 14 percent predicted earlier this year due to the resurgence of the new home market in the past quarter.
- High-income households are the least rate sensitive and are continuing to invest in luxury K&B remodeling.
- Spending on projects involving kitchen and bath professionals is forecast to decline by 5 percent, and DIY spending is expected to decline by 7 percent in 2023 versus 2022.
- Moderate declines in remodeling spending are expected due to high inflation and lower levels of household savings.
- The risk of a recession in 2023 is less likely than expected earlier this year due to the current rate hike cycle.
Additional Topics Covered
- 2023 market size and forecast by construction type (new construction vs. remodeling)
- Current view and historical impact of inflation on the housing market and mortgages
- K&B remodeling spending by source of funding
- Long-term outlook for K&B remodels
- Summary of projected 2022-24 recession indicators and housing metrics