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The National Kitchen & Bath Association (NKBA) and John Burns Real Estate Consulting have released their Q4 2019 Kitchen & Bath Market Index (KBMI), which reveals an energetic expansion despite showing signs of a slower pace of growth throughout the year. With KBMI scores above 50 indicating growth, this quarter's KBMI of 69.8 is well above that of previous quarters (Q3: 64.3, Q2: 65.4).
The KBMI is the definitive gauge of kitchen and bath industry conditions based on findings across four primary industry segments: Design, Building & Construction, Retail Sales and Manufacturing. The index also serves as a valuable lens into several critical economic indicators, including consumer confidence, discretionary spending and the strength of the housing market.
"A strong Q4 is great news for industry professionals and consumers going into 2020," said Bill Darcy, NKBA CEO. "As we move into the new year, we're encouraged that this dynamic industry continues to grow and business outlooks are positive."
"The health of the kitchen and bath industry is an invaluable proof point for clients looking toward the strength of the housing market," said Todd Tomalak, senior vice president of research for John Burns Real Estate Consulting. "We're pleased to continue this quarterly report with NKBA to provide real-time insights as home-buying and building trends shift so rapidly."
Key takeaways from the KBMI fourth-quarter report include the following:
Methodology note: Historical revisions to the KBMI have been incorporated in this release due to changes in the weighting methodology that occurred in Q4-2019. The revised index weights three inputs: 55 percent for current sales conditions, 15 percent for next quarter sales conditions, and 30 percent for current state conditions.