NKBA 2021 Kitchen & Bath Market Outlook: October Update
Report Price: $1995
This NKBA Research Report is included with NKBA Membership. Log in to access the report.
The National Kitchen & Bath Association just released its second and final update to its 2021 Kitchen & Bath Market Outlook (KBMO). The report provides a thorough assessment of the U.S. residential kitchen & bath industry, with a focus on the current market size by segment and forecast for the entire year. Various housing industry indicators as well as online survey research of homeowners heavily factored into the findings. Additionally, an extensive section on the growing single family rental (SFR) investment market is included.
The lion’s share of growth is set to come from new construction, with year-over-year gains forecast at over 26%.
Key Takeaways
- Total industry revenues for the year are forecast at $167 billion, a very healthy 19% increase over last year’s $141 billion, but a modest downward revision from the $171 billion forecast in the July update.
- The lion’s share of growth is set to come from new construction, with year-over-year gains forecast at over 26%. Remodeling is expected to increase nearly 10%. While these forecasts are very strong, they are a bit below previous full-year 2021 forecasted gains of 28.5% and 12.5%, respectively.
- High-end projects will lead in full year growth, with expected increases over last year north of 22%, vs. a 21% YOY gain for mid-level and a more modest increase of just below 11% for low-end projects. Growth expectations at the high-end have been scaled back from the July 2021 update, which had it growing by 28%.
- Single-Family-Rental (SFR) investors are having an increasingly significant impact on topline K&B remodel revenues, and are expected to contribute an estimated $4 billion to the totals.
Additional Topics Covered
- YOY growth expectations for key housing indicators
- Analysis of which K&B features are most likely to receive premium upgrades
- Homeowner equity effects on the remodeling market
- Housing inventory challenges
- Stage-of-life correlation to level of upgrades