Florida, Texas and Southeastern K&B Pros Anticipate Strongest Revenue Growth
By NKBA Editorial Staff
The Q3 2024 NKBA/John Burns Kitchen & Bath Market Index (KBMI) includes important regional insights that reflect a generally static 2025 for the kitchen and bath industry as a whole, but also offers some clear signs that professionals believe a period of substantial growth is on the horizon.
K&B sales growth year- over year (YOY) was slowest in California, Texas and the Southwestern U.S. during the last quarter, according to the industry professionals surveyed. There were, however, indications of an upswing in other parts of the country. Most notably, K&B pros in the Southeast reported solid 8% YOY growth, while those in the Midwest (6%) and Northwest (6%) also cited positive results. Firms in Florida and Hawaii both cited an uptick in renovations following recent storms and the ongoing recovery from the 2022 Maui wildfires.
U.S.-based K&B firms, on average, expect to see revenue growth of 8% in 2025. Those solid projects are driven, in large part, by optimism from surveyed professionals in Florida, Texas and the Southeast region – all report expected growth of 10% or more next year.
Here are some additional regional highlights from the Q3 2024 KBMI report:
Slow Sales in the Southwest and California
Sentiment from California-based pros reflected ongoing uncertainty about several factors, including the election, the economy, and higher costs. Southwest firms also commented on the persistent divide between wealthy and more reluctant middle-income consumers. Despite these challenges, K&B professionals in these areas anticipate 2025 growth of 7-8% on average.
Southeast Firms Lean Into Proactive Business Strategies
Companies across the Southeast described steps they will take in the new year to achieve their hoped-for 10% average growth rate. Examples include upgrading showroom displays, increasing marketing spending, networking with builders, and stepping up their media activities.
In the Midwest, New York and New Jersey, Gen-X and Millennials are Actively Renovating
Kitchen and bath professionals in the Midwest region, including Illinois, noted stronger Gen-X and millennial performance. On average, pros in the region expect revenue growth of 8%. Similar sentiments were reported by pros in the New York/New Jersey area.
“Industry pros across the country are reporting very positive expectations for the coming year, anticipating that, over time, the considerable pent up demand for K&B renovations will start to translate into more active projects,” said Bill Darcy, Global President & CEO, NKBA | KBIS. “It’s clear that K&B firms have been smart in weathering a challenging year, and are being equally strategic as they prepare to capitalize on growth opportunities in 2025.”
To access additional regional data and insights, download the full Q3 2024 NKBA/John Burns Kitchen & Bath Market Index (KBMI) report here.
