NKBA I KBIS Kitchen and Bath Overview of Regional/Market Conditions report also features important, positive regional economic indicators
By NKBA Editorial Staff
After two consecutive years of decline, kitchen and bath remodels per household are expected to increase nationally over the next two years, according to findings in the latest NKBA I KBIS Kitchen and Bath Overview of Regional/Market Conditions report.
National Kitchen Projects per 1000 Households will rebound from 66 in 2024 to 68 in 2025 and 74 in 2026; Bath Projects per 1000 Households, which dipped to 69 in 2024, will climb to 72 this year and 77 in 2026.
This data-rich report provides a snapshot of regional markets for kitchen and bathroom remodel projects, new construction volumes, economic conditions, and related projections — going beyond the broader intelligence we also gather about how the K&B industry is faring nationally.
Here are some notable regional insights that help explain the changing national picture:
Positive outlook for new construction, especially in Texas and the Southeast
Nationally, the ratio of total new construction permits from 2024-2026 vs. 2021-2023 is estimated to be 91%. The Southeast and Texas have the most favorable outlook for New Construction – in both regions, permit volumes for 2024-2026 will almost fully return (95%) to the elevated levels from 2021-2023. The Northeast (82%) will lag furthest behind the national average of any region.
Significantly, however, when focusing solely on single-family new construction permits, volumes for 2024-2026 are projected to exceed 2021-2023 totals for all regions.
Strongest Kitchen and Bath remodel activity in the Northeast
Homeowners in the Northeast and Midwest are projected to do the most Kitchen and Bath remodels on a per household basis. Kitchen remodels are looking particularly strong in the Northeast, projected to decline less than National rates in 2024 and outpace other regions in 2025 and 2026. For example, bathroom remodel projects per household in the Northeast will grow in 2025 and 2026 at a faster rate than national projections — in 2026, alone, the region is expected to see +10.7 year-over-year growth in renovations per 1,000 households.
High Income Households growing fastest in the Southeast, High Income Industries in the Southwest and Texas
High Income Households ($150k or more) are projected to grow fastest in the Southeast, with a Compound Annual Growth Rate (2023-2028) of 9.2%. California (5.8%) and the Northeast (6.9%) are expected to see the slowest growth in this area.
The Southwest and Texas have the most favorable outlook for growth in high income industries, specifically Information, Finance, Professional and Business Services.
“Our industry is poised for growth over the next two years, largely because K&B professionals have made smart decisions during a challenging period,” said NKBA I KBIS Global President & CEO Bill Darcy. “Beyond weathering a stagnant couple of years, they have strategically positioned their businesses to take advantage of an improving market as more favorable conditions return. We’re optimistic that they will soon begin to reap the benefits of that strategic thinking.”Read more key regional insights by downloading the NKBA I KBIS Kitchen and Bath Overview of Regional/Market Conditions report here.
