NKBA’s 2024 Kitchen and Bath Market Outlook Indicates that Buyers of Quick-Move-In Homes are Eager to Make Their Own Upgrades Right Away
By NKBA Editorial Staff
We typically think of remodels in association with aging homes and dated kitchens and baths that desperately need a refresh. But, increasingly, buyers of new homes are pursuing “instant remodels” to upgrade spaces that don’t meet their expectations.
NKBA’s 2024 Kitchen & Bath Market Outlook explores this trend as part of its broader look at projected industry trends for the coming year and how they are shaped by evolving economic factors.
The market for existing homes is tighter than it has been in some time. Rising mortgage rates have discouraged many who are locked in at lower historical rates from moving. Increasingly, prospective home buyers focused on both availability and affordability are turning to newly built homes, including entry-level homes with lower-end finishes.
Meanwhile, builders are rapidly completing new homes to meet demand. To keep costs down for themselves and consumers, more builders are opting to construct quick-move-in homes. Some have eliminated design centers in favor of pre-curated design packages that homebuyers can’t customize. The positive for home buyers in these “everything included” packages is affordability, as well as certainty about the final purchase price, costs at closing and the prevailing lending rate. The trade-off is a lack of choice about finishes and features.
For these home buyers, who perhaps spent less than budgeted for their new homes, remodeling soon after purchase can be a viable and appealing option.
“This is a uniquely challenging housing market, especially for those looking to purchase their first home,” said Bill Darcy, Global President and CEO, NKBA | KBIS. “The concept of spending less on purchase price and embarking early on upgrades on a newly built home is an attractive alternative to more expensive, highly-customized homes that can take longer to complete. We see this scenario as one important driver of the overall kitchen and bath renovation market in 2024 and beyond. ”To read more about the outlook for the kitchen and bath industry, download NKBA’s 2024 Kitchen & Bath Market Outlook report here.
