New Homes Drive Kitchen and Bath Spend

Spending on kitchen and bath projects in North America may reach $189 billion in 2022, a 16 per cent increase from 2021, says the National Kitchen and Bath Association’s (NKBA) ‘2022 Kitchen and Bath Market Outlook’ report. New construction is projected to represent over 60 per cent of industry revenues, driven by a record number of new home builds. The report forecasts 21 per cent year-over-year new construction growth. Mid-range projects are expected to register the biggest year-over-year gains, with an estimate of upwards of 20 per cent gains. Higher-end activity is gaining momentum with homeowners moving on deferred projects. Lower-end work projection has been sharply scaled back due to higher inflation causing many to put their projects on hold. Climbing interest rates are favourable for remodel activity. Nearly three in four homeowners are locked into mortgage rates below four per cent, making it more cost-effective to remodel than to move. This, along with record-high homeowner equity per household and a high number of homes in prime remodeling years, bodes well for the second half of 2022.