U.S. cabinet and countertop sales are expected to see a rebound after the coronavirus shelter-in-place orders caused sales to plummet. Sales will benefit from low-interest rates and pent-up demand. Housing sales and homeowner remodeling projects are already being stimulated by changing lifestyles. Consumers are looking for more work-at-home space, are upgrading their kitchens for more at-home meals, and are expanding their living areas for more at-home entertainment experiences.
The benefits of the opening of the U.S. economy is already being seen in improved housing numbers.
- Housing starts were up 5.3% from April to May 2020, with multi-family starts up 19.7%
- New housing permits were up by 9.5% from April to May 2020, indicating that future starts will increase at even sharper rates
- Existing home sales flattened out in May after sharp drops in March and April. However, existing home sales should start increasing in June since home showings increased sharply from May to April. The sale of an existing home generally leads to a major home improvement project six to 12 months after the home purchase.
As a result, cabinet and countertop sales are forecast to increase by 5.0% during 2021 and is projected to increase some 4.0% annually through 2025. To take advantage of industry growth, continue to increase emphasis on stock line cabinets and quartz countertops. Cabinet sales opportunities should also benefit from the growing popularity of islands and tall cabinets in kitchen designs.
For more information on this timely report see Catalina Report on Cabinets and Countertops, May 2020. Contact Stuart Hirschhorn at Catalina Research, Inc. (shirschhorn@catalinareports.com or 561-988-0853) to discuss the findings in the report.