The National Kitchen & Bath Association (NKBA) has released its 2021 Market Outlook report, revealing the industry is poised for continued growth with overall spending for both kitchen and bath projects to increase in the coming year. The industry anticipates a pronounced rebound in overall industry growth from -5.9% in 2020 to 16.6% in 2021, compared to 9% in 2018 and 1% in 2019.
Homeowners cite the kitchen and bath areas as two times more important than other spaces within the home, and the kitchen particularly gained status throughout the COVID-19 pandemic, with 70% of homeowners considering it extremely important compared to 64% prior to the crisis. With a renewed focus on these rooms, the industry projects a tailwind of big interior projects, including indoor kitchen remodels. This year may see a shift from the DIY boom of 2020 toward jobs that require a kitchen and bath professional, many of which may have been postponed by homeowners during the pandemic, due to health risks associated with having someone inside the home.
"After such a strong year for home remodeling in 2020, some wondered if we were approaching a home improvement spending 'cliff.' We're pleased to say that's not what the kitchen and bath market is expecting in 2021," said Bill Darcy, NKBA CEO. "Last year, homeowners started the work of improving their living spaces with DIY projects. And this year, with early distribution of the vaccine and other measures to reduce the public health impact of the virus, we expect to see continued renovations and more projects requiring our members."
The study saw a number of project motivators and inspirations that continue to drive renovations including the following:
Economic indicators that may impact remodeling activity include the following:
NKBA commissioned the highly regarded consulting firm John Burns Real Estate Consulting (JBREC) to field the study. The data presented in this report is compiled from a variety of sources: The U.S. Census American Housing Survey home-improvement projects microdata, National Apartment Association (NAA) spending (rental), and JBREC's home improvement estimates and forecasts of single-family rental renovation spending. In addition, a survey was conducted among 4,732 among homeowners who had initiated a home improvement project since the start of the COVID-19 pandemic.