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The National Kitchen and Bath Association NKBA recently released a new research report showing that the US high-end kitchen, bath market will grow by 28% in 2021 compared to 2020, beating the previous forecast of 19.8%.
In the NKBA’s latest market forecast, it revises its sales forecast for the kitchen and bath industry in the US in 2021. It expects consumer spending on kitchens and baths to be US$170.9 billion in 2021, up 21.4% from US$140.8 billion in 2020. This is almost 8% higher than the association’s initial estimate for the year 2021.
According to the NKBA, spending on new kitchens and baths in the US in 2021 is expected to increase by 28.5% compared to 2020, while spending on kitchen and bath remodels is expected to increase by 12.5%. в 2021, total spending on kitchens (new construction and remodelling) is expected to reach $81 billion. Spending on bathrooms is estimated to reach US$89 billion, more than 20% higher than last year and significantly higher than the NKBA’s initial forecast.
The Kitchen and Bathroom Market Index (KBMI) is a quarterly indicator of current and future economic conditions in the kitchen and bath industry. According to the KBMI, the kitchen and bath market index released by the NKBA, the US kitchen and bath market index continued to rise from 61.9 in the third quarter of 2020 to 82.3 in the second quarter of 2021, already up from 69.8 in the fourth quarter of 2019.
NKBA/John Burns Kitchen & Bath Market Index (KBMI) 2Q 2021
NKBA’s analysis noted that the previous caution of homeowners to reduce spending on dining, entertainment, travel and leisure due to the epidemic lockdown, coupled with the government’s $5 trillion stimulus package to consumers, has brought about an increase in savings. This coupled with record low-interest rates made housing-related loans easier. During the epidemic, the kitchen and bathroom of the home became the centre of the family. This has made more homeowners realise that bathrooms and kitchens are in desperate need of renovation. According to the NKBA survey, 30 per cent of homeowners plan to increase spending on home improvements, while only 20 per cent or less plan to increase spending on dining out, entertainment, travel or health.
For those planning home improvements in 2021, kitchens and master bathrooms ranked first and second, respectively, among the dozen home areas offered. 55 per cent of respondents said they plan to remodel their kitchens, while 40 per cent said they would primarily remodel their bathrooms. Remodelling the exterior of the house, deck/deck and master bedroom were 37%, 29% and 29% respectively. According to the NKBA, the average price of home improvement projects was 25% higher than last year.