KBDN

Kitchen & Bath Market Pegged at $134 Billion

ORLANDO, FL  Kitchens and baths are the “heart and soul of our homes,” and represent a $134-billion industry, according to research conducted by the National Kitchen & Bath Association.

The Hackettstown, NJ-based NKBA, announcing its findings at January’s Kitchen & Bath Industry Show here, said that more than 10% of American homeowners undertook a kitchen or bath remodeling project in the past year, for a total kitchen/bath remodel and replacement market of $85 billion. The kitchen and bath market for new residential construction is estimated to be $48.6 billion, according to the NKBA.

The NKBA research found that, each year, homeowners remodel upwards of 10.2 million kitchens – roughly one in 10 households – and 14.2 million bathrooms. Annual new-home construction adds roughly 1 million kitchens and 2.3 million bathrooms to the marketplace, the NKBA said.

Nearly half (48%) of kitchen remodel-and-replacement projects were budgeted at $15,000 or more, while one in five Americans (21%) spent $7,500 or more to remodel their master bathroom, according to the NKBA research, which was based on an online survey fielded in early 2016 that generated 1,078 responses from homeowners, builders/remodelers and general contractors.

Other findings include:

  • There was a significant variation in kitchen project budgets, pointing to more partial upgrades rather than complete remodels. For example, 63% of respondents spent less than $5,000 on their kitchen remodeling or replacement project, the NKBA said.
  • Similar to previous generations, younger homeowners are more inclined to DIY their kitchen projects, while baby boomers are more inclined to hire professional expertise.
  • As with kitchens, there was a significant variation in spending for bathroom remodels and replacements. For example, nearly four in 10 (38%) of respondents budgeted less than $2,500 for their bathroom remodeling or replacement project.

“This NKBA research is the first in a decade to quantify the size of the kitchen and bath industry,” said NKBA CEO Bill Darcy. “Our $134-billion industry has a major impact on the U.S. economy, representing nearly a fifth (18%) of the total residential design and construction marketplace. 

“Kitchens and bathrooms are big business,” observed Manuel Gutierrez, NKBA consulting economist and principal of ManuelDJGutierrez, LLC. “The $134-billion residential construction and remodeling market for American kitchens and baths is weighted toward remodeling, with $85.2 billion (64%) allocated to remodeling and $48.9 billion (36%) earmarked for new construction,” Gutierrez added.

“We remain cautiously optimistic about the remodeling outlook simply because the number of houses in the U.S. increases year after year,” added Gutierrez. “There are currently more than 135 million homes in the U.S. that are in need of constant remodeling and improvement. This drives a constant stream of demand for products and services in the remodeling market.”

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