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.
Let’s rewind to previous moments of economic uncertainty and market constraint:
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.
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.
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:
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.
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.
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.
Labor shortages and material tariffs may be unavoidable, but reducing back-and-forth, misorders, and decision friction saves time and money on both sides.
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.
Kitchen and bath brands that embrace immersive, flexible, and confidence-building digital experiences are better positioned to:
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.