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Over the last decade, and especially the last five years, our industry has demonstrated remarkable resilience as it has weathered changing fortunes, including unprecedented growth during the global pandemic. During the past two years, the market for kitchen and bath products and upgrades has remained relatively stagnant, in large part because many homeowners interested in mid-level renovations have stayed on the sidelines.

Economic puzzle pieces

Now, as we enter the second quarter of 2025, there is a real sense that the significant pent-up demand from“ missing middle” households will start to be activated, leading to a gradual return to growth for the kitchen and bath industry. This important and sizable group has been waiting for borrowing rates to ease before tapping into their historically high levels of home equity to fund renovations. However, many may be coming to grips with the reality that rates are unlikely to ease significantly in the near future.

Companies that remodel single-family homes owned by middle to high-income households are expecting revenue growth of 3.7 percent in 2025, according to the Q4 2024 NKBA and John Burns Kitchen & Bath Market Index( KBMI) report. While we’ re certainly still contending with some persistent challenges, including ongoing uncertainty surrounding global trade regulations, this may be an early indicator that the market is primed for meaningful growth after two consecutive years of contraction.

This isn’ t just wishful thinking: there are several ingredients contributing to this shared optimism, including borrowing rates trending slightly more favorably, record high home equity levels, an exceptionally high level of paused renovation projects, a record number of homes entering their prime remodeling years, and rising household wealth as it transfers from baby boomers to millennials. According to Zonda, regional market conditions will propel California and the Northeast to see the most growth for kitchen and bathroom remodel projects per household in 2025, compared to national projections.

Even in times of economic uncertainty, the luxury kitchen and bath remodeling market, especially high-end design-build activity, consistently outpaces DIY projects by homeowners, as reported in NKBA’ s 2025 Kitchen & Bath Market Outlook. These households are more likely to finance major renovations using their savings, rather than waiting for borrowing rates to fall and tapping into their home equity.

This evident appetite for talented professional designers, manufacturers, retailers, builders, remodelers, and architects continues to be a reliable driver of growth for

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