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2026 Kitchen & Bath Industry Outlook Update: Higher Inflation and Weaker New Home Construction Tempers Growth 

Building on a Year of Stability, a More Gradual and Uneven Recovery is Expected
Image courtesy of Getty Images.

By NKBA Editorial Staff

The NKBA I KBIS 2026 Kitchen & Bath Industry Outlook Update, which provides a refreshed, mid-year look at U.S.residential kitchen and bath industry activity, indicates that the overall 2026 forecast remains stable and largely unchanged from February.

U.S. K&B revenue, including both materials and labor, will stay essentially flat at $228 billion in 2026. 

Here are some additional key insights:

Contraction Has Slowed, Growth is Delayed

While revenue growth is expected to contract for the fourth consecutive year in 2026, the pace of that contraction has noticeably slowed from a high of -2.6% in 2023 to an expected -0.4% this year.

Limiting Factors: Inflation and Weak New Home Construction

Higher-than-expected inflation and weaker new-home construction will keep real market volumes slightly negative, resulting in a more gradual and uneven recovery than previously anticipated.​ That recovery will be especially dependent on segment, price point and customer profile.​ 

Opportunity in Repair and Remodeling

Repair and remodeling K&B spending is forecast to increase by +3.5% in 2026, with price increases driving the gains. Pro-led K&B spending continues to outpace DIY, rising by +5.3% this year, compared to more modest +1.1% growth in DIY renovations. Meanwhile, new construction K&B spending will decline by -4.7% this year. 

“This is shaping up to be a year that is about stabilization and market-share shifts, rather than a broad-based recovery,” said Bill Darcy, Global President & CEO of NKBA I KBIS. “The good news is that our industry is moving from a prolonged period of contraction toward anticipated growth, even if the process is taking longer than we’d like.”

To access additional insights and information, download the full NKBA I KBIS 2026 Kitchen & Bath Industry Outlook Update.