The Housing Industry Association (HIA) revealed on Tuesday that the installation of new kitchens and bathrooms in Australia is now worth a whopping $11 billion a year.
With that in mind, the association decided to launch the HIA-GWA Kitchens and Bathroom Report for 2016/17 to study the trend further.
“The installation of new kitchens and bathrooms in Australia is worth $11bn a year alone, before consideration of the vibrant renovations market. The Kitchens and Bathrooms sector contributes significantly to employment and economic activity,” HIA chief economist, Dr Harley Dale said.
The HIA-GWA Kitchens and Bathroom report provides comprehensive forecasts and unique insight into this important sector of Australia’s residential construction industry and wider economy.
“It has been a strong four years for new kitchen and bathroom installations in particular,” Dale said.
“It is estimated that across the kitchens and bathrooms sector there should be around 637,000 new installations in 2016/17.”
“As new home building activity begins to ease back from this year, the baton of growth is projected to pass to the renovations side of the kitchens and bathrooms sector. Indeed the process is already underway with the recent development of K&B renovations once again assuming the mantle of being near the top of Australians’ preferred renovation jobs.”
“The unique survey within the HIA-GWA Kitchens and Bathrooms Report includes analysis of the age of Australia’s dwelling stock. This is the single largest driver of renovations demand,” Dale said.
“The stock of housing due to come ‘online’ in the key 11 to 20-year renovation age range for detached houses augers well for growth in K&B renovation jobs in approaching years.”
“It is a positive short-term outlook for the Kitchens and Bathroom sector, which is good news not only for the sector itself but also for the broader domestic economy,” he added.