The National Kitchen and Bath Association (NKBA) has recently released its 2024 Kitchen and Bath Market Outlook Report, providing invaluable insights into the current dynamics and future projections of the industry. This information is not only relevant but crucial if you are a builder, interior designer, architect, and contractor. Let’s dive into why this report should be on your radar. Here is a recap based on what I’ve read. Side note, I encourage your to look at this report to form your own opinion as well.
1. Eager Homeowners and Remodeling Trends
The report highlights a growing eagerness among homeowners to engage in remodeling projects. However, a significant number of homeowners are holding off anticipating a decrease in borrowing rates. This hesitation prompts many to turn to more modest DIY projects for the time being. Understanding these trends can assist you in aligning your services with the evolving needs of homeowners.
2. Financial Landscape and Industry Resilience
In an environment where the economy and job market have outperformed expectations, there’s a nuanced picture for the Kitchen and Bath (K&B) industry. Full-year revenues for residential K&B spending are expected to reach $173 billion in 2024, showcasing resilience despite a modest year-over-year decline of 3 percent. This information offers a realistic perspective for all of us as we navigate the industry.
3. New Construction Challenges and Opportunities
For those involved in new construction, the report forecasts a decline of 4 percent in new construction spending in 2024. While small builders face challenges due to high-interest rates for land and financing, large builders are leveraging rate buydowns to maintain optimism in single-family starts and sales. This insight allows you to strategize and adjust where needed.
4. Remodeling Landscape and Financial Considerations
Understanding the financial considerations of homeowners regarding remodeling is paramount. The report indicates that while there’s a slight year-over-year decline of 2 percent in remodel spending (projected at $67 billion), homeowners with mortgages below 5 percent find remodeling more cost-effective than moving. Professionals should take note of this trend to tailor their services accordingly.
5. DIY Surge and High-Income Dynamics
As DIY spending is expected to grow by 2 percent in 2024, professionals should be prepared to provide resources and guidance for simpler updates. But keep in mind that high-income households are likely to move forward with major remodeling projects because they are capable of tapping into cash savings which present significant opportunities in 2024.
To end, this report provides indicators for optimism about the long-term outlook for the K&B industry. Factors like the anticipated declined mortgage rates, homeowners sitting on record levels of home equity, and deferred remodeling projects fueling future demand offer a positive perspective. For professionals in the field, staying informed about these trends is not just a strategic move but a necessity.
To explore the complete findings and insights, download the full 2024 Kitchen & Bath Market Outlook report here. This report is not just a compilation of data; it’s your guide to understanding the pulse of the industry and navigating through the challenges and opportunities that lie ahead.
Shaun Ayala
Kitchen & Bath Marketer – Best Buy / Pacific Sales