In its new Kitchen and Bath Market Index for the first quarter of 2026, the organization sees some positive signs for the business.
Kitchen and bath companies are forecasting moderate revenue gains for 2026, with more projecting low-to-mid-single-digit growth averaging 3.6 percent, the organization said. Retailers are the most positive, forecasting a 6 percent increase, while manufacturers are more cautious, projecting growth of just 1.8 percent.
For the second consecutive quarter, the KBMI, which surveys industry professionals across the retail, design, building and remodeling and manufacturing sectors and is done in conjunction with John Burns Research and Consulting – rated 55 out of 100, an indication of flat industry activity and unchanged sentiment about the sector’s overall economic health. The NKBA said the building and remodeling segment was the only sector to report year-over-year sales growth during the past quarter.
The survey showed that consumer uncertainty ranked as the leading factor holding down growth, followed by rising building material costs and concerns about tariffs and trade policies. These were largely unchanged from the previous quarter.
Respondents to the survey also showed concerns about skilled labor shortages with more than half saying they will have a moderate or significant impact on the companies’ ability to take on new projects this year.
The only area of the building market for kitchen and bath that seemed to hold up was the luxury sector, the association said. “We continue to see hesitancy from the so-called ‘missing middle’ of homeowners who want to embark on kitchen and bath renovations, but are staying on the sidelines because of costs,” said Bill Darcy, global president & CEO of the organization. “As we wait for conditions to improve, the luxury market remains a critical driver of growth and source of resiliency for our industry.”
