Consumer uncertainty continues to impact North American market, says NKBA

The Kitchen & Bath Market Index (KBMI), which measures growth in the US residential kitchen and bathroom industry, remained flat year-over-year at 53 out of 100, as K&B professionals said ongoing consumer uncertainty, driven largely by rising material costs and trade tensions, is slowing demand and limiting growth. 

The 2Q26 Kitchen and Bath Market Index (KBMI) Report, conducted jointly by the National Kitchen and Bath Association (NKBA) and John Burns Research & Consulting, reflects the insights provided by 500 NKBA members across 4 segments: design, building and remodeling, retail, and manufacturing. The manufacturing sector was the one segment that upgraded its KBMI rating (+1%) in this latest survey as it continued to experience modest expansion, yet it also downgraded its expected residential sales growth (-5%) for the year.

Despite headwinds, K&B professionals’ sentiment about the economic health of the industry has remained essentially unchanged over the past year.​

Some additional findings from this latest research:

A Dip in Expected Revenue Growth
North American K&B firms now expect -2% revenue growth in 2026, down from +4% last quarter, with downgrades cross all segments. Retail segment firms expect to fare best, projecting +5% revenue growth in 2026. While all K&B segments downgraded their full-year growth outlook from 1Q to 2Q, all but the manufacturing segment still projected modest, single-digit growth this year.

Cost Pressures and Tariffs are Top Concerns
Once again, K&B professionals cited consumer uncertainty most as the leading constraint to their growth (49%). That was 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 6 months, and 40% said they have passed tariff-related costs through to consumers.

Consumers are Looking for Ways to Save
Price sensitivity is holding back kitchen and bathroom 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.

Positive Signs of Near-Term Activity
Despite challenges, kitchen and bathroom 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 3 years, which could be an early indicator of improving conditions over the coming months. 

“There’s no doubt that macroeconomic factors are posing a range of challenges for consumers and K&B professionals alike,” said Bill Darcy, Global President & CEO, NKBA I KBIS. “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.”