2022 Kitchen & Bath Market Outlook – July Update

The National Kitchen & Bath Association has released its midyear Market Outlook Update, its final forecast for 2022. The report’s goal is to provide a thorough assessment of how various economic and housing developments are impacting the kitchen and bath industry. It includes an amended gauge of how the industry is expected to fare by year’s end, taking into account trends that have developed since the last report, such as sharp rises in mortgage rates and inflation. NKBA commissioned John Burns Real Estate Consulting (JBREC) to conduct the study. The analysis is based on various government and industry sources along with JBREC’s own internal forecasting models. 

Takeaways

• Full year revenues are expected to reach $189 billion, 16 percent higher than last year but $10 billion below the initial 2022 forecast. 
• New construction is forecast to grow by 21 percent and represent over 60 percent of the industry total, driven by a record number of homes in various stages of completion.
• Mid-spend projects are expected to increase by 20 percent, followed by high-end at 15 percent and low-end at 11 percent, with more modest projects likely scaled back due to inflationary pressures. 
• Record homeowner equity exceeding $300,000 has helped maintain strength in larger remodel projects.

Additional topics covered

• DIY vs. PRO spending
• Mortgage rate increases and home affordability
• Historical impact of recessions on K&B spending
• Age of homes as a driver of K&B remodels