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NKBA estimates kitchen and bath market at $158.11 Billion

Kitchen and Bath market value estimates for 2017

Summary estimated retail market value for the kitchen and bath markets (2017). Image courtesy of NKBA

February 25, 2019

The National Kitchen & Bath Association (NKBA) released the results of its extensive Size of Market Study and Outlook, revealing a value of $644 billion in sales of products and materials aimed at the residential kitchen and bath market in 2017. This total includes $330 billion from the construction of new homes and $314 billion from residential remodeling and replacement (R&R) projects.

Construction of new houses rose 8.6% in 2017, to reach a market size of $330 billion. Remodeling and improvement of existing homes (i.e., residential remodeling) amounted to $314 billion in 2017. This is 6.4% higher than it was in 2016.

To note:

  • The U.S. residential kitchen and bath market spiked 7.3% to $158.11 billion in 2017 (for materials only, excluding design and labor costs), surpassing the 2016 spending level of $148 billion.
  • At $158 billion, the U.S. residential kitchen and bath market represents one quarter of the entire U.S. residential construction market.
  • Overall spending for kitchen and bathroom products is virtually even, with each category garnering 50% of the market (i.e., $80 billion for kitchen products and $78 billion for bath products).
  • Of this $158 billion total, $99 billion (63%) is generated by remodeling and replacement projects in existing homes and the remaining $59 billion (37%) comes from new home construction.

 

The NKBA 2018-2019 Kitchen and Bath Industry report produces the 2017 market size information for the following:

  • By residential market segment: new housing construction; remodel and replacement.
  • By product category: 9 kitchen and 12 bathroom product categories.
  • A total of 775 surveys were conducted among builders, remodelers and general contractors, soliciting information on their business activities and growth.
  • A total of 550 consumer surveys were conducted with individuals who had completed a kitchen or bathroom remodel project in the past 12 months.
  • The new housing projections were calibrated with actual housing construction data and changes in the value of new housing construction. The projections for the remodeling segment were calibrated based on the Joint Center for Housing Studies of Harvard University’s remodeling spending estimates.

 

Furthermore, the NKBA estimates the U.S. residential construction market will continue to expand in both 2018 and 2019. For 2018, NKBA estimates residential construction will rise to $683 billion, up 6% from 2017. A further 4.8% growth is projected for 2019, bringing the residential construction market to $716 billion.

“Our research reveals the strong position of the kitchen and bath industry, which is particularly significant in times of a fluctuating economy," said Bill Darcy, NKBA CEO. "This research is an invaluable tool that helps our membership with strategic business decisions, and solidifies NKBA's thought leadership in the industry."

This article was originally posted on www.supplyht.com.
KEYWORDS: economy

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