Rising Prices Seen Steadily Withering Consumer Remodeling Demand

by Autumn McGarr

PORT WASHINGTON, NY — Escalating prices had little impact on consumer demand for core kitchen and bath improvement products throughout much of the COVID-19 pandemic, although that may be changing in 2022, an industrial research firm has reported.

According to The NPD Group, a research organization based here, the average selling price of products related to kitchen and bath home improvements increased 5% in 2021, while unit sales rose 15%. However, the trend “began to equalize” toward the end of 2021, and early-2022 results illustrate a more traditional correlation between prices and demand, with an 8% increase in average prices and a 2% decline in unit sales in February, NPD Group researchers said.

“The kitchen and bath home improvement market is at the crossroads between seemingly unshakable consumer demand and impending vulnerability,” said Joe Derochowski, home industry advisor at NPD. “As consumers begin to emerge from their home-centric pandemic lifestyle and behaviors of the past two years, their needs, spending and demand will continue to shift.”

Demand “variation” shifts markedly based product category, NPD researchers reported, noting the need by suppliers “to reevaluate pricing and promotional strategies for home improvement products, based on the consumer’s current frame of mind.

“This is the time to take action, in order to inspire continued consumer demand and maximize business potential,” Derochowski said.

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