Abstract: A preformed niche assembly and method of forming a niche include attaching the niche assembly in a stud cavity before a wall covering is installed. The preformed niche assembly includes a body that is constructed to be received in a stud cavity and a flange that extends about a perimeter of the body. The flange includes a first surface constructed to engage a stud and a second surface generally aligned with the first surface. The second surface of the flange is constructed to engage a non-exposed surface of a wall covering. The preformed niche assembly simplifies niche formation and allows positioning of a niche prior to installation of the wall covering.