The National Kitchen & Bath Association anticipates a 19-percent year-over-year increase in spending for residential kitchen and bath construction and remodeling in 2022.
The prognostication was released during the organization’s annual trade show.
Spending on new construction will see a 21-percent increase, although new housing starts are only predicted to increase by 6 percent in 2022. This can be attributed to a growing backlog carrying over from 2021 and marginal improvement in builder construction cycle time. A continued strong home market and an increase in home value bodes well for the kitchen and bath industry, as homeowners look to capitalize on their home’s equity.
“As we begin 2022, the industry as a whole continues to be optimistic and is forecasting continued rapid growth in both new construction and remodeling,” said Bill Darcy, CEO of the National Kitchen and Bath Association, which has about 50,000 member firms.
“Even with this increasing demand, however, we cannot dismiss the current risks we are facing,” Darcy noted, ranging from higher interest rates to a widespread industry labor shortage. Growing demand will continue to exacerbate ongoing supply-chain challenges, the organization notes.
Due to the kitchen and bath industry having a more complex supply chain than most other US industries, delays and other complications have a higher probability as various stakeholders coordinate to deliver products.
Do-it-yourself projects also are expected to rise in the coming year, growing 9 percent in 2022 to just under $26 billion.