RETAILOBSERVER.COM MARCH 2022
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he National Kitchen & Bath Association – the world's leading
non-profit trade association for the kitchen and bath industry
providing tools, research, certification, and events for over
50,000 members – has released its baseline Kitchen & Bath Market
Outlook for 2022. The report projects that the kitchen and bath
industry is poised to experience a 19% year over year (YOY) increase
in spending – from $167 billion to $199 billion – for residential
kitchen and bath construction and remodeling.
In an atypical trend, spending on new construction will see a 21%
increase, although new housing starts are only predicted to increase
by 6% in 2022. This can be attributed to a growing backlog carrying
over from 2021 and marginal improvement in builder construction
cycle time. In the report, John Burns Real Estate Consulting data
predicts home prices will continue to appreciate in value
approximately 9% versus approximately 6% for inflation. A continued
strong home market and an increase in home value bode well for the
kitchen and bath industry as homeowners look to capitalize on their
home's equity.
Besides new construction, it is expected that banks will begin
easing credit standards for home equity line of credits (HELOCs)
KITCHEN AND BATH
MARKETING OUTLOOK PREDICTS
CONTINUED RAPID GROWTH
FOR INDUSTRY IN 2022
Bullish sentiments driven in part by a boost in delayed
new construction, an increase in cash-out refinance
funded remodels and continued interest in DIY projects
