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Home Remodel Demand Continued to Soften in Q2, Says NKBA

The National Kitchen & Bath Association reported softening demand for remodeling projects in Q2 and the second consecutive quarter of easing capacity restraints. Some 36% of manufacturers reported higher inventories, the group emailed Thursday. Kitchen and bath sales grew 6.9%…

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from Q2 2021 when sales were 14.2% higher than the 2020 quarter; it was the second consecutive quarterly deceleration in year-over-year sales growth, NKBA said. Some 59% of design firms and 82% of building and construction firms reported either cancellations or postponements of projects. Manufacturers said they're receiving inventory and products faster than in previous years, and they're “value engineering projects for customers, choosing what is available now at affordable margins and price points.” They're also reporting smaller backlogs in Q2 vs Q1. Industry guidance suggests flat or declining revenue growth in 2023, particularly in retail sales, NKBA said.