The state of the kitchen and bathroom design and remodeling market. By Bill Darcy  

This is an exciting time for the kitchen and bath design and remodeling sector, as these key rooms continue to expand both in size and significance as focal points of whole-home design and personal wellness.    

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 our industry. As luxury projects reliably move forward, the “missing middle” and interest-rate sensitive homeowners, as well as projects delayed due to a lack of available skilled labor, are going to play a critical role in continued industry expansion.   

Hot off the KBIS floor  

With luxury comes expectations of customization and personalization, and a focus on elevating everyday experiences throughout the home. As we saw at the recently wrapped KBIS 2025, the NKBA’s annual kitchen and bath trade show, the home interior trends of the moment point to the luxury segment. From color-rich cabinets and appliances to indoor-outdoor ice baths, and statement sinks, the innovative brand exhibits spoke to the eclectic style of today’s high-end designers and their clientele.  

Furthermore, NKBA’s 2025 Bath Design Trends report shows a continued focus for the next few years on wellness and relaxation, with spa-like features, intentional lighting, natural colors, and countertops and finishes that are easy to clean and maintain. NKBA’s surveyed designers say that more homeowners are looking to create a space where they can linger and rest while getting ready for their day or winding down.  

In the kitchen, design trends for the next few years emphasize healthy living, a connection to the outdoors, and reduced clutter through added storage being a sought-after personalization feature according to NKBA’s 2025 Kitchen Design Trends report. Here the surveyed designers recommend coloring our most frequented rooms in the home with light, warm, and natural tones to achieve the tranquility and relaxation associated with nature.  

Personalizing the home you own  

Low housing inventories and high borrowing rates have contributed to a housing market where homeowners of all income levels are staying put for longer. NKBA’s 2025 Kitchen & Bath Market Outlook reports a 7.8 percent mobility rate for US homeowners compared to ten percent five years ago. The report also notes that two out of three kitchen and bath remodeling dollars are being spent by households living in their homes longer than two years. As homeowners are doubling down on the desire to remodel in place and customize their kitchens and bathrooms to their specific needs, we can expect designs that prioritize longevity and sustainability will continue to be popular over the next few years, and beyond. In short, “trendy” is out; “timeless and classic” are in.   

I am optimistic that as our industry embraces this era of innovation and growth, homes will become more personalized, vibrant, and beautiful than ever before.    

For a list of the sources used in this article, please contact the editor. 

www.nkba.org  

Bill Darcy is the Global President & CEO of the National Kitchen & Bath Association (NKBA). NKBA is the not-for-profit trade association that owns the Kitchen & Bath Industry Show® (KBIS). With 55,000 members in all segments of the kitchen and bath industry, NKBA has informed, educated, and supported the industry since the association was founded in 1963. Its mission is to inspire, lead, and empower the kitchen and bath industry through community, professional certification, and learning and events.