Business is booming for kitchen and bath industry
Monday, May 11, 2015
Even during the lean years, kitchen and bath remodels topped the list of most requested home renovation projects for those who could afford them. Now that homeowners are able, willing and eager to invest more in their homes, demand for kitchen and bath remodels is increasing.
Several new surveys show that business has been growing over the past year, and remodelers expect this year to be even better.
Home improvement professionals are anticipating a surge in business during the second quarter, according to the latest U.S. Houzz Barometer. Three-fourths (75 percent) of remodelers reported quarter-over-quarter gains between the fourth quarter of 2014 and the first three months of 2015. More than 8 in 10 (82 percent) expect higher revenues in the second quarter of this year due to increased inquiries, number of projects and the size of projects or orders.
Kitchen and bath remodelers are among those most optimistic.
"I'm happy to report that the overall tone is positive — words like 'improving,' 'growing' and 'better' indicate that our industry continues to be optimistic," National Kitchen and Bath Association CEO Bill Darcy said in the group's first State of the Industry Report, based on feedback from 640 kitchen and bath designers,
Nearly two-thirds (60 percent) of the designers polled saw increased revenue in the past 12 months, with an average increase of 13.5 percent. Nearly 7 in 10 (69 percent) expect to see increased revenue in the coming 12 months. The average price point for a kitchen remodel in the past 12 months was $36,400, and for a bathroom model, $18,400.
In a separate survey of its members conducted by the National Association of Home Builders, remodelers reported that kitchen and bath remodels continue to be the most popular home renovation projects.
"Both bathroom and kitchen remodels were up 6 and 7 percent from 2013, respectively, rebounding strongly from historic lows in 2010," NAHB found. Bathroom remodels were the most commonly requested job, as cited by 78 percent of respondents.
Residential architects, too, are benefitting from kitchen and bath remodeling work. Reporting on the results of its latest Home Design Trends Survey, the American Institute of Architects observed, "As the housing recovery continues, homeowners' investment in their kitchens and bathrooms remains a key focus." More than half (55 percent) of the architects participating said requests for kitchen and bath remodels had increased in 2014, with kitchen renovations in particular gaining in popularity, size and scope.
Results of consumer surveys released earlier this year showed that as many as 6 in 10 homeowners were planning substantial home improvement projects this year. Driving this trend is the fact that many homeowners are choosing to improve their current home rather than upgrade to a more costly or new home.
Luxury bath upgrades are especially popular with consumers, as they are generally more affordable than kitchen remodels. However, consumers appear to be willing to spend more on these projects than in recent years, and thus are more likely to engage the services of a professional rather than attempt to do all the work themselves.
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