The Kitchen & Bath Market Index, which measures growth in the U.S. residential kitchen and bath industry, remained flat year-over-year at 53 out of 100. K&B pros said ongoing consumer uncertainty, driven largely by rising material costs and trade tensions, is slowing demand and limiting growth.
Industry Outlook
The 2Q26 Kitchen and Bath Market Index Report reflects the insights provided by 500 NKBA members across four segments: design, building and remodeling, retail, and manufacturing. The manufacturing sector was the one segment that upgraded its rating (+1%) in this latest survey as it continued to experience modest expansion.
Despite headwinds, K&B pros’ sentiment about the economic health of the industry has remained essentially unchanged over the past year. Some additional findings from this latest research include a dip in expected revenue growth, with K&B firms now expecting -2% revenue growth in 2026, down from +4% last quarter.
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Challenges and Concerns
Cost pressures and tariffs are top concerns for K&B professionals, with 49% citing consumer uncertainty as the leading constraint to their growth, followed closely by rising building material costs (42%), which jumped significantly (+12%) from the previous quarter. More than a third (36%) of the surveyed pros said tariffs and trade issues will negatively impact their growth over the next six months.
Consumers are looking for ways to save, with price sensitivity holding back kitchen and bath spending. More than a third of design firms reported that consumers, concerned about higher prices, are shifting to lower price points – the highest share since this measure was first recorded in 2023, and up +13% from 1Q26.
According to the report, 40% of K&B professionals said they have passed tariff-related costs through to consumers.
Near-Term Activity
Despite challenges, kitchen and bath firms reported higher expected sales in the upcoming quarter (65 out of 100) as compared to the same period last year (59 out of 100). It’s the highest 2Q value in three years, which could be an early indicator of improving conditions over the coming months.
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Bill Darcy, Global President & CEO, NKBA I KBIS, noted, “There’s no doubt that macroeconomic factors are posing a range of challenges for consumers and K&B professionals alike. While expectations for this year have definitely been somewhat tempered, our research indicates that firms continue to hold steady as they make adjustments to take advantage of available opportunities.”
The National Kitchen and Bath Association provides resources and support for professionals in the industry, including research and education on topics such as design, building, and remodeling, available on their website.
The full 2Q26 Kitchen & Bath Market Index report is available for download, providing valuable insights and data for professionals in the industry.
