Remodeling Spending Preferences

According to the latest remodeling activity data from the Joint Center for Housing Studies of Harvard University, spending in this sector is expected to stay above 7 percent for the rest of 2018 and into 2019, with annual spending surpassing the $340 billion mark early next year. Kitchens—the heart of the home—represent a lucrative $74 billion market within this category.

New exclusive research from the National Kitchen & Bath Association analyzes five buyer types, designated by both cooking- and design-confidence levels, to assess how specific lifestyles and behaviors inform remodeling spending.

Most homeowners want to remodel their kitchens for the same reasons—appearance and function—and typically seek to do so in the same ways: updating countertops, cabinets, flooring, and appliances, the study found.

Yet the market segments begin to diverge when it comes to homeowner design confidence and cooking expertise. Half of kitchen remodeling projects are started by those who enjoy cooking and making healthy meals. The other half are initiated by “Struggling Cooks” who prefer prepared foods and have less time to cook. Struggling Cooks, seeking design help or not, account for 46 percent of the market, with an equal spending share.

The study concludes that the highest-value segments for designers, contractors, and manufacturers are the home cooks at any skill level who want design help. Indeed, homeowners with the least design confidence typically have the highest household income—an average of $14,000 more annually than in the more confident cohort. Confident Cooks who need help designing their kitchen remodel tended to have homes with the most square footage and highest home values.