Kitchen & Bath Sector Termed 'Resilient, Flexible'

NKBA predicts gradual return to stabilization and growth in 2026 after three years of contraction.

Apr. 2, 2026 at 5:26pm

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Despite challenges facing the U.S. economy, the kitchen and bath remodeling sector is expected to see a gradual return to stabilization and growth in 2026, according to a new report from the National Kitchen & Bath Association (NKBA). The NKBA projects U.S. kitchen and bath revenue, including materials and labor, will grow by 0.1% to $228 billion in 2026, with momentum picking up in the second half of the year.

Why it matters

The kitchen and bath remodeling sector is a key indicator of the health of the broader home improvement industry. After three years of contraction, this report suggests the sector is poised for a comeback, which could have positive ripple effects across the housing and construction markets.

The details

The NKBA report cites several factors driving the projected growth, including an increased share of spending on existing-home renovations, reduced impact of tariffs on building product prices, and high levels of consumer interest. However, the skilled labor shortage and high labor costs will continue to be challenges for some kitchen and bath companies.

  • The NKBA's 2026 Kitchen & Bath Market Outlook report was released in recent weeks.
  • The NKBA projects U.S. kitchen and bath revenue will grow by 0.1% to $228 billion in 2026, with momentum picking up in the second half of the year.

The players

National Kitchen & Bath Association (NKBA)

The leading trade association for the kitchen and bath industry, representing more than 50,000 members worldwide.

Bill Darcy

NKBA Global President & CEO, who provided commentary on the industry outlook.

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What they’re saying

“While affordability challenges haven't gone away, we expect to see more consumers move forward with projects as borrowing rates and product prices hopefully begin to ease.”

— Bill Darcy, NKBA Global President & CEO

“Even amid unpredictable macroeconomic forces, the growth conditions for the residential design industry remain solid.”

— Bill Darcy, NKBA Global President & CEO

What’s next

The NKBA plans to release additional details and analysis from the 2026 Kitchen & Bath Market Outlook report in the coming weeks, providing a more comprehensive look at the industry's projected performance and key trends.

The takeaway

After a challenging period, the kitchen and bath remodeling sector is poised for a gradual recovery in 2026, driven by factors like increased existing-home renovations and reduced supply chain disruptions. However, the industry will still face headwinds from labor shortages and high costs, underscoring the need for continued innovation and adaptation.