2026 Kitchen & Bath Industry Outlook: Mid-Year Update
The National Kitchen & Bath Association (NKBA) has released its 2026 Kitchen & Bath Industry Outlook: Mid-Year Update, highlighting the most significant changes since the baseline forecast released in February. Designed to complement the full annual outlook, this update provides a concise assessment of how economic conditions, inflation, housing activity, and consumer behavior are shaping the U.S. residential kitchen and bath industry through the remainder of 2026.
The research was conducted by John Burns Research and Consulting (JBREC) in partnership with NKBA, using a combination of government, industry, and proprietary data sources, along with JBREC’s forecasting models.
The overall 2026 market forecast remains essentially unchanged at approximately $228 billion. However, higher-than-expected inflation is now projected to contribute more to industry spending, while real project volumes remain soft. The market is projected to decline slightly (-0.4%), reflecting stabilization rather than a broad-based recovery.
Key Takeaways
- Remodeling Outperforms New Construction: Existing-home renovations continue to outperform new construction, representing a growing share of industry spending.
- Professional Remodeling Leads Growth: Professional remodeling is expected to remain the primary driver of growth within the homeowner remodeling market.
- New Construction Remains Under Pressure: Weakness in both single-family and multifamily construction continues to weigh on overall kitchen and bath demand.
- Inflation Is Supporting Revenue Growth: Industry spending is increasingly being supported by higher prices rather than stronger project activity.
- Market Headwinds Persist: Consumer uncertainty, tariffs, rising material and labor costs, elevated mortgage rates, and skilled labor shortages continue to constrain growth.
The report provides kitchen and bath professionals with a focused update on the market shifts, emerging opportunities, and business pressures expected to shape the industry through the end of 2026.
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