Spending on Kitchen and Bath Remodels to Increase 2.9% This Year

Spending on kitchen and bath remodeling is expected to increase 2.9% this year—with the most significant growth happening during the third and fourth quarters, according to an industry outlook released by the National Kitchen & Bath Association. The outlook projects that the kitchen and bath industry will reach $228 billion in revenue this year.

Several demographic factors driving the growth:

Homeowner are trending older

Older homeowners will be a major driver for kitchen and bath renovations because these households tend to have more home equity to fund the projects.

Older homeowners aren’t moving

More than half (55%) of owner households are headed by someone age 55 or older, and this demographic tends to move less frequently than households headed by younger owners. Instead, older owners are investing in renovations that focus on universal design so their homes will be safe and functional for years to come.

A focus on bathroom remodels

Kitchen and bath spending increases around age 40, driven by life events and wealth gains, and rises again among homeowners ages 55–59 as they prepare to age in place. The growth in older households is expected to drive accessibility-related renovations in kitchens and bathrooms.

Younger homebuyers prioritize kitchens

For nearly 75% of young families, the kitchen is the most important or one of the most important factors that influence their home-buying decision. Therefore, expect potential sellers to invest in kitchen renovations to improve their home’s appeal to buyers.