Report Price: $1995
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The National Kitchen & Bath Association (NKBA) has released its mid-year Market Outlook Update report, which serves as the final forecasting report for 2024. This comprehensive report includes an estimate of the current size of the Kitchen & Bath (K&B) market in U.S. dollars, projections for the K&B market in 2024 based on updated data and insights from the first half of the year, and an in-depth analysis of how various economic and housing market trends are influencing the kitchen and bath industry.
The research for this report was conducted by John Burns Research and Consulting (JBREC) in collaboration with NKBA. The analysis is based on data from various government and industry sources, as well as JBREC’s internal forecasting models.
Residential K&B spending is expected to decline by 2 percent in 2024 to $175 Billion.
Key Takeaways
- Kitchen and bath spending is expected to total $175 billion in 2024, this is a decrease of only 2 percent year over year. This is slightly more positive than the decrease of 3 percent predicted earlier this year. This indicates the K&B market remains healthy by historical standards.
- New construction spending is projected to drop 2% to $108 billion this year, influenced by a 6% fall in housing starts. The focus is shifting to smaller, entry-level homes with value-engineered kitchens and baths.
- Increased single-family home construction and labor and material costs will partly counteract the decline in spending.
- Repair and remodeling (R&R) spending is expected to decrease by 2% to $67 billion, impacted by 18 months of inflation affecting household savings.
- High borrowing rates limit home equity access, and high-income homeowners are cautious, leading to major R&R projects being deferred or divided into smaller tasks.
Additional Topics Covered
- 2024 market size and K&B spending forecasts for kitchens vs. baths, and PRO vs. DIY projects
- Current view and historical impact of inflation on the housing market and mortgages
- K&B remodeling spending by funding source
- Summary of projected 2022-24 recession indicators and housing metrics