Tag Archives: Forecast

NKBA reveals top kitchen and bathroom trends

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NKBA reveals top kitchen and bathroom trends

A few recent surveys polled various groups working in the kitchen and bathroom trades for their thoughts and trends and the state of the industry.

The NKBA’s 2021 Kitchen & Bath Market Outlook provides a comprehensive review of current kitchen and bath industry conditions and the macroeconomic factors that are expected to impact the industry in 2021.

Key findings include:

  • Residential kitchen and bath remodeling spend is poised for growth in 2021, based on a mix-shift to bigger, more expensive and PRO-heavy interior remodels.
  • Pent-up demand for more PRO-intensive projects is a tailwind for spending growth in 2021.
  • New construction spending is to benefit from the timing of starts in 2020 anticipated to dollarize in 2021.
  • Strong housing starts in the latter half of 2020 and longer build times to favorably impact new construction spending in 2021.
  • Total residential kitchen and bath spending is to increase 16.6 per cent in 2021, from $136 billion to $158.6 billion. This is driven by a 9.9- per-cent increase in kitchen and bath remodeling spending and a 22.3- per-cent increase in kitchen and bath new construction spending.
  • Of the total $158.6 billion in total residential kitchen and bath spending, $68.6 billion represents residential remodeling spending (43 per cent) and $90 billion residential new construction (57 per cent). This represents a two-percentage point mix-shift away from residential remodeling towards new construction spending, driven by faster growth in new construction.
  • The overall dollar spend allocation between residential kitchen spending (48 per cent) and residential bathroom spending (52 per cent) in 2021 is unchanged compared to the 2020 period.

Homeowners indicate the kitchen and bathroom rank two times more important compared to other parts of the home. The pandemic has reinforced this perception, as the kitchen slightly gained status since the pandemic. Due to COVID-19, budgets for kitchen remodels fell faster than all other areas of home improvement, which is a unique backdrop for faster growth in 2021, when the health-risks associated with a PRO inside the home are diminished.

Acceleration in activity

One key learning from the study is that kitchen remodels lead to future bathroom remodels, supporting an acceleration in bathroom remodeling activity. In addition, growth in cabinets, drives more widespread spending to other parts of the kitchen: Product attachment cascades from cabinets to the remodeling of other parts of the kitchen. As COVID-19 behavior diminishes, reverting wallet share to services consumption is not likely to hurt kitchen and bath; desire to save (given economic uncertainty) and health risks are the most influential motivations; higher household precautionary savings is a potential source of financing for an anticipated rebound in 2021 kitchen and bath spending. These factors support a pronounced rebound in overall industry growth, from -5.9 per cent in 2020 to 16.6 per cent in 2021.

Consistent with mix-shift away from less expensive remodels (pent-up COVID-19 related demand), the high price-point for residential kitchen and bath spending is anticipated to lead growth (19.8 per cent), followed by the mid-price point (18.5 per cent), with the low-price point posting strong, but lower rates of growth (9.7 per cent).



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Canadian housing market to moderate in 2019 but growth to continue in Ontario and Toronto

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Canadian housing market to moderate in 2019 but growth to continue in Ontario and Toronto

Canada Outlook NEW


By Wayne Karl

Canada’s housing market should see a moderation in both housing starts and sales, while home prices are expected to reach levels that are more in line with economic fundamentals such as income, job and population growth. This forecast for 2019 and 2020 is drawn from the 2018 Housing Market Outlook from the Canada Mortgage and Housing Corp. (CMHC).

Source: CMHC Housing Market Outlook
Source: CMHC Housing Market Outlook

Nationally, CMHC’s outlook for 2019 projects total housing starts to edge down and range between 193,700 to 204,500, with the downward trend expected for both single and multi-unit starts. MLS sales are expected to be between 478,400 and 497,400 units annually while MLS prices should lie between $501,400 and $521,600.

“Our key takeaway from this year’s outlook is moderation in Canada’s housing markets for 2019 into 2020,” says Bob Dugan, chief economist, CMHC. “Housing starts are expected to decline from the higher levels we’ve seen recently. We expect resales in 2019 and 2020 to remain below recent peaks while prices should reach levels that are more in line with economic fundamentals such as income, job and populations growth.”

Ontario recovery

After dampened market activity in 2018, existing home sales and housing starts in Ontario, particularly in single-family homes, will post a partial recovery in 2019. Buyers are expected to re-enter the market on the strength of stronger than expected job growth and in-migration, before the downward trend in starts and sales resumes in 2020.

Source: CMHC Housing Market Outlook
Source: CMHC Housing Market Outlook

GTA growth

With balanced conditions prevailing in the GTA, CMHC expects moderate sales growth and home prices growing in line with inflation. The rising costs of homeownership will result in strong rental demand, while new supply will add some upward pressure on vacancy rates. Toronto buyers should see more housing choices as builders concentrate their efforts on new highrise projects.


Housing starts activity and MLS sales in BC should moderate, as economic and population growth slows while MLS average prices are expected to see a flatter growth profile through 2020.

Over the next two years, Metro Vancouver’s resale market will see lower sales, higher inventories of homes for sale and lower home prices compared with recent market highs. Through 2018, demand and home prices softened across all market segments and local geographies.

Buyers’ market conditions in Alberta and Saskatchewan should gradually shift to a balanced market with gradual improvement in economic and demographic fundamentals. Balanced market conditions in Manitoba are expected to continue.

Various factors will push and pull the demand for housing in Calgary in 2019 and 2020. Calgary’s economy will experience stronger growth in population and employment. This will help support demand and lift sales in 2019 and 2020. However, the average MLS price will continue to face downward pressure but is expected to stabilize in 2019 and modestly rise in 2020.

Housing starts and sales of existing homes will both be sustained, however, slower economic growth and rising borrowing costs will moderate activity through 2020. Starts will continue to be dominated by the apartment market segment, while demand for resale single-detached homes will remain relatively strong.

In 2018 and 2019, rental housing demand will increase slightly faster than supply in Montreal, which will put some downward pressure on the vacancy rate. Demand will be supported by rising net migration over the forecast horizon.

The Atlantic region will see sustained activity, notably in Nova Scotia, where existing home sales and average prices should trend higher while rental demand will drive growth in apartment construction.


7 factors that will affect GTA housing in 2019 – and 5 reasons to consider buying NOW




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Real Estate Sales 2017 Year-End and 2018 Forecast

Real Estate Sales: 2017 Year-End and 2018 Forecast

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Real Estate Sales: 2017 Year-End and 2018 Forecast

In the GTA, 2017 set a record high in new condo apartment sales and a record low in single-family home sales

In the GTA new home market, 2017 was a year of declining inventory, high prices and strong sales, setting a record high in new condo apartment sales and a record low in single-family home sales, the Building Industry and Land Development Association (BILD) announced January 26, 2018.

Overall in 2017, there were 44,143 new homes sold in the GTA, according to Altus Group, BILD’s official source for new home market intelligence. That makes 2017 the fourth strongest year for new home sales in the GTA since Altus Group started tracking in 2000. Only 2002, 2011 and 2016 had stronger new homes sales, with 2002 being the highest at 53,660 units sold.

Of the new homes sold in 2017, 82.5 per cent (36,429 units) were condominium apartments in low, medium and highrise buildings, stacked townhouses and loft units, the highest number of condo apartments sold in any year in the GTA, while 17.5 per cent (7,714) were single-family homes, including detached, link, and semi-detached houses and townhouses (excluding stacked townhouses), the lowest number sold since Altus Group started tracking in 2000.

“Low inventory and escalating prices across the board are behind the highs and lows of the sales numbers we saw in 2017,” said David Wilkes, BILD’s new president and CEO. “Our industry wants to build new homes to increase the housing supply in the GTA, but we need municipalities to work with us to expedite the process by simplifying the development approval process, updating zoning by-laws to align with provincial policies and servicing developable land with critical infrastructure.”

The supply of new housing is typically measured by the number of new homes available for purchase in builders’ inventories at the end of the month and includes units in pre-construction, under construction and completed projects. At the end of December 2017, there were 11,397 new homes available for purchase, down 13.2 per cent from 13,136 at the end of December 2016 and 60.3 per cent below the 28,739 new homes available 10 years ago. Since 2000, the total inventory at the end of each month has typically been between 20,000 and 30,000 units. For over a year and a half now, it has been below 20,000 units.

The decline in single-family home inventory has been even more dramatic. At the end of December 2017, there were 3,481 new single-family homes available for purchase, down 74.4 per cent from 10 years ago.

New home prices rose again in December 2017, with the benchmark price for available new single-family homes at $1,225,774, which was 23.2 per cent above last December’s benchmark price of $995,116. Meanwhile the benchmark price for available new condo apartments was $716,772 in December, 41.3 per cent above the December 2016 benchmark price of 507,128.

“While many end user buyers have been looking to the new condominium apartment sector for more affordable homes, some are now starting to be priced out of this segment as well,” said Patricia Arsenault, Altus Group’s executive vice president of Research Consulting Services.

Wilkes said BILD will be raising issues of housing supply and affordability as the municipal elections approach this fall.

“As the GTA prepares for unprecedented growth, we must get this right to ensure the region continues to be one of the most dynamic and vibrant places to live,” he said. “We are calling on governments at all levels to ensure that people who choose to live in the GTA can afford to purchase a new home.”

December 2017 New Home Sales by Municipality

Dec. 2017 Condominium Apartments Single-family Total
Region 2017 2016 2015 2017 2016 2015 2017 2016 2015
Durham 17 50 43 21 75 94 38 125 137
Halton 170 59 47 53 93 85 223 152 132
Peel 87 130 50 12 152 196 99 282 246
Toronto 352 1,692 1,031 8 32 17 360 1,724 1,048
York 218 345 155 65 277 226 283 622 381
GTA 844 2,276 1,326 159 629 618 1003 2,905 1,944
Source: Altus Group


Robust Activity Will Continue In 2018

The “2018 GTA Flash Report,” which provides a comprehensive review of the real estate market in the GTA based on 2017 data, was released January 26, 2018 by the Altus Group. The report highlights another record-breaking year for total investment property sales volumes, and looks at the performance of commercial leasing, land and residential sectors in the GTA.

Investment property sales, including land sales, as well as sales of office, retail, industrial, hotel and rental apartment properties, reached a total of $23.5 billion in 2017, a 38 per cent increase from 2016 and a record for the seventh consecutive year. Residential land sales contributed a record $8.5 billion to the total, up $2.8 billion over 2016.

In the office-leasing sector, the GTA-wide office vacancy rate fell in 2017 to 8.9 per cent (including vacant but leased space), even with the completion of 13 new office buildings that have added two million square feet of inventory. Most of the new office supply under construction is in the downtown submarket, where the vacancy rate at the end of 2017 was below 6 per cent.

Turning to the new home sector, Altus Group’s data shows that total new home sales in the GTA reached just over 44,000 units in 2017, the fourth highest level on record. New condominium apartment sales, which includes apartments in low, medium and high-rise buildings, lofts and stacked townhouses smashed the previous annual record set in 2016 with just over 36,400 units in 2017.

“Altus Group data show that homebuying intentions remain strong in the GTA, despite the many roadblocks that have been put in potential buyers’ way due to factors such as price escalation in recent years, rising interest rates, tighter lending criteria and additional stress testing,” said Matthew Boukall, senior director at Altus Group.

The buoyancy in the GTA real estate sector in 2017 is poised to continue this year according to Altus Group experts. Below are key predictions for 2018:

Office shared work spaces: The trend of renting workstations within a larger office space will grow in the GTA as low vacancy rates lead to higher rents. Look for this segment to grow not just in the downtown market, but throughout the GTA, as employers look to accommodate staff pushed further out in search of more affordable housing options.

Land sales: Residential land sales are expected to be strong in 2018, although higher prices and various policy changes have introduced more uncertainty to the land market. High-demand areas are likely to remain expensive, which could push some developers to seek more affordable options outside traditional core areas.

New homes market: New condominium apartment sales are expected to remain elevated in 2018. However, surpassing 2017 levels will be a challenge. While investor interest continues to be strong, some end user buyers who have been looking to the new condominium apartment sector for more affordable homes are now starting to be priced out of this segment as well. Some modest increase in new single-family sales is possible, however sales in this segment will continue to be challenged by lack of available product, in particular options that are affordable to a broader range of buyers.

Industrial and Retail: Demand for industrial space will remain strong as online and traditional retailers seek warehouse space to support their e-commerce business strategies. Retailers will continue to shrink their brick and mortar footprint and traditional retail space will continue to evolve as retail centres focus on consumer experiences, especially food themes, to draw in traffic.

Investment Property: Investor appetite will remain strong in 2018. With interest rates moving up, there is potential for some shift away from debt-financed buyers toward more cash-focused institutional buyers.

Download the full “GTA Flash Report 2018” at datasolutions.altusgroup.com/gta-flash-report-2018



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