The world might be shifting, but home is still where people invest.
Across history, when economic conditions get rocky or interest rates rise, American homeowners don’t just hit pause… they pivot. Instead of upgrading to a new home, they look for ways to upgrade the one they’re already in. Kitchen and bath remodels in particular become focal points: they’re value-builders, mood-lifters, and the rooms where both daily life and design dreams collide.
And that moment is here again.
The housing market might be tight, but the remodeling market? It’s heating up.
History Repeats: What We’ve Learned From Past Shifts
Let’s rewind to previous moments of economic uncertainty and market constraint:
- 2008–2010 (Post-Recession Recovery):
After the housing crash, homeowners stayed put. Between 2009–2011, the Joint Center for Housing Studies found that spending on home remodeling held steady while home sales plunged. Kitchen and bath upgrades were among the most common, often done to improve livability while riding out the storm. - 2020–2022 (Pandemic-Era Shifts):
With remote work and lifestyle changes, remodeling exploded. HomeAdvisor reported a $9K increase in average project spend, and NKBA’s 2021 Design Trends study saw kitchen remodels outpacing pre-pandemic numbers by 31%. - 2024–2025 (Current Landscape):
Today’s high interest rates and limited housing supply are leading us into another remodel-centric moment. Homeowners are delaying moves, tapping equity, and doubling down on kitchens and baths (arguably the most personal and high-impact spaces in the home).
The Forecast: Remodeling Is About to Rise Again
The latest data points to a clear trend: homeowners are gearing up to invest in their spaces once again. According to the Harvard Joint Center for Housing Studies’ LIRA (Leading Indicator of Remodeling Activity), home improvement and repair spending is projected to grow from $513 billion in Q1 2025 to $526 billion in Q1 2026. This uptick is notable in any economic climate but especially striking given the broader atmosphere of financial caution.
Adding to the momentum, the National Kitchen & Bath Association (NKBA) forecasts a 2.9% increase in professionally-led remodels this year. This signals a shift in consumer behavior: homeowners aren’t just tackling weekend DIY projects, they’re choosing to invest in high-quality, expert-driven renovations.
Unsurprisingly, kitchens and bathrooms continue to lead the way. These spaces remain top priorities for remodelers due to their strong return on investment and the daily satisfaction they provide. Even in times of tighter budgets, homeowners are focusing their resources on the rooms that matter most.
What’s Fueling the Trend?
- High Interest Rates
With 30-year mortgage rates lingering around 7%, many buyers are shelving home purchase plans. Remodeling becomes the smarter investment. - Limited Housing Inventory
New home availability is low, and the ones that are available may not meet design expectations. Rather than compromise, consumers choose to customize what they have. - Equity-Fueled Spending
Homeowners who bought years ago have equity to tap (often at much lower interest rates) making remodels financially viable even in an inflationary environment. - Lifestyle-Led Design Priorities
Whether it’s entertaining, aging in place, or maximizing small spaces, today’s homeowners want form and function, not just finishes. And they’re willing to pay for it.
The Industry Challenge: Pressure on Pricing, Labor & Supply
Naturally, this remodeling resurgence doesn’t come without its hurdles. Kitchen and bath brands are facing intense pressure on multiple fronts. Tariffs on appliances, raw materials, and cabinetry components continue to drive up costs and extend sourcing timelines making it harder to maintain competitive pricing without sacrificing margins.
At the same time, a persistent skilled labor shortage is straining project timelines and capacity. With more than 300,000 open roles across construction and remodeling-related trades, the talent gap is slowing down execution just as demand begins to climb.
And then there’s the consumer mindset. Even among higher-income shoppers, budgets are under scrutiny. Today’s buyers are more cautious and expect transparency, flexibility, and confidence in their purchase decisions.
It’s a tricky climate, no doubt. But for brands willing to adapt and innovate, this is also a moment rich with opportunity.
The Advantage of Going 3D: Why Product Experience Matters More Than Ever
In a market where confidence, customization, and clarity rule, your digital product experience could be the make-or-break factor. Here’s why 3D and AR matter now more than ever:
✅ Confidence drives conversion.
Buyers are cautious, but not disengaged. Dopple clients have seen 62% higher add-to-cart rates for shoppers who interact with 3D configurators. When people can see how a faucet looks with different finishes or how a stove fits in their layout they act.
✅ Customization is the expectation.
Kitchens and baths aren’t one-size-fits-all. With 3D configurators, brands can offer dynamic product personalization, from cabinet hardware and tile colors to appliance configurations, all in real-time.
✅ Visualization reduces risk and returns.
Nothing undermines buyer trust like receiving something that looks different than expected. With AR visualization, shoppers can see how a new fixture, oven, or vanity will look in their actual space before buying.
✅ Efficiency offsets rising costs.
Labor shortages and material tariffs may be unavoidable, but reducing back-and-forth, misorders, and decision friction saves time and money on both sides.
For Kitchen & Bath Brands: This Is the Moment to Rethink Strategy
You don’t need to be a futurist to see the writing on the (tiled) wall:
Remodel spend is rising. Consumers want more control. Budgets are tight, but expectations are high.
Kitchen and bath brands that continue relying solely on static images and spec sheets risk falling behind. Not because the products aren’t great, but because the experience doesn’t match modern buying behavior.
Instead of fearing the turbulence, be the brand that thrives through it.
The Bottom Line: Remodel Momentum Is Rising. Is Your Brand Ready?
Kitchen and bath brands that embrace immersive, flexible, and confidence-building digital experiences are better positioned to:
- Stand out in a crowded (and cautious) market
- Reduce cost friction with better buyer clarity
- Close more sales, faster and with fewer headaches
- Build long-term loyalty through experience-led trust
If your products are built to be seen, personalized, and installed with pride make sure your digital experience reflects that.
Let’s build a better buying experience before the next boom leaves static brands behind.
Explore Dopple’s 3D and AR solutions for the kitchen and bath industry, let's chat.
