Updated: Aug 6, 2018
There are many reasons why homeowners invest in their kitchens and bathrooms. As a major segment of the home improvement industry, it is essential to keep up to date with the facts and figures that can help a showroom take advantage of the booming market.
People invest the most in their kitchens and bathrooms.
Understanding the state of the market and the mind of the consumer are key factors for serious showroom owners. Home improvement spending is seeing a major upturn as house prices rise and more and more homeowners invest in their properties.
Whether it’s new home construction or renovations in older homes, kitchen and bathroom spaces are where most homeowners put in the time and financial investment.
When it comes to costly renovations, especially in the two most expensive rooms in the house, consumers need as much expert advice as they ever did. Kitchen and bath showrooms are still the place to go.
Quick K&B Figures:
Kitchen and bath projects counted for 25 percent of residential construction costs.
10.2 million kitchens and 14.2 million bathrooms are remodeled each year (NKBA)
New home construction adds another 1 million kitchens and 2.3 million bathrooms.
Kitchen budgets vary: nearly half of kitchen projects were $15,000 or above, but with the popularity of upgrades over full renovations, many kitchen projects are $5,000 and under.
Around 20% of master bathroom remodels cost $7,500 or more. The majority of bathroom remodels, according to the NKBA study, were $2,500 and under.
Young homeowners are willing to DIY, while older generations prefer hiring experts.
Learn more at from the Joint Center for Housing Studies of Harvard University.
Residential renovation is seeing major growth
In 2016, NKBA estimates valued new home construction at $304 billion, while residential renovation and replacement projects were valued at $297 billion.
Improvement spending is high among younger buyers with older homes. They go with what is affordable and are willing to make improvements.
A homeowner under 35 in a pre-1980 house is a home-improvement star. They spend 16 percent more on home renovations than the national average.
Smart home technology and other gadgets are increasingly popular. Consumers expect to integrate technologies into their home improvement projects.
Homeowner spending is expected to increase 2 percent a year through 2025, a reflection of rising income and home values.
Home improvement spending is likely to exceed $340 billion by early 2019!
Where does a stellar showroom fit in?
A key driver of success is a truly modern showroom. The formula is simple: when a space looks good, customers spend more. Staff is happier and find it easier to meet sales goals. A refreshed space proves that management is confident in the products they sell and in the future of the store.
Renovations increase retail sales up to 43 percent for new customer and 7 percent for existing customers.
Stores often recoup remodel costs in two or three years.
There is an average of 7-10 years between major showroom renovations.
Space, merchandising and branding are major factors contributing to a showroom renovation.
Increased online sales and changing customer behavior force retailers and dealers to adapt.
A full renovation is expected to increase sales by at least 10 percent, but the average increase is 38 percent.