E. Construction

2nd Quarter 2018 Report

Download Construction Data Tables (spreadsheet)

The indicators of Hawaii’s construction industry were mixed in the first quarter of 2018.  The private building authorizations, and State CIP expenditures decreased, however, construction jobs and the government contracts awarded.

Construction has been one of the steady contributors to job growth in Hawaii over the past few years.  In the first quarter of 2018, the construction sector added 100 jobs or 0.3 percent, compared with the same quarter of 2017.  In 2017, the construction sector lost 1,600 jobs or 4.2 percent (Table A-7) from the previous year.  Before the recession, specifically the period 2002 through 2007, construction job growth averaged 8.0 percent per year.  In the fourth quarter of 2007, the average number of construction jobs reached a peak of 40,000 jobs.  The strength of the construction job market in the past few years was a sharp contrast to the recession period.  From the second quarter of 2008 until the second quarter of 2011 quarter-over-quarter construction job growth was negative in all quarters.

In the first quarter of 2018, private building authorizations in the state decreased $219.7 million or 23.9 percent, compared with the first quarter of 2017 (Table E-8).  In 2017, private building authorizations in the state decreased $112.8 million or 3.5 percent compared with the previous year.

In the first quarter of 2018, private building authorizations in Honolulu decreased $233.9 million or 37.2 percent, compared with the first quarter of 2017 (Table E-8).  In 2017, private building authorizations in Honolulu decreased $133.7 million or 6.2 percent, compared with the previous year.

In the first quarter of 2018, private building authorizations in Hawaii County increased $18.6 million or 15.1 percent, compared with the first quarter of 2017 (Table E-8).  In 2017, private building authorizations in Hawaii County decreased $78.8 million or 13.7 percent, compared with the previous year.

In the first quarter of 2018, private building authorizations in Maui County decreased $12.8 million or 9.2 percent, compared with the first quarter of 2017 (Table E-8).  In 2017, private building authorizations in Maui County increased $92.8 million or 24.1 percent compared with the previous year.

In the first quarter of 2018, private building authorizations (residential only) in Kauai increased $8.4 million or 28.7 percent, compared with the first quarter of 2017 (Table E-8).  In 2017, private building authorizations in Kauai increased $6.8 million or 4.9 percent compared with the same period of the previous year.

Government contracts awarded increased $318.7 million or 149.1 percent in the first quarter of 2018 compared with the same quarter of 2017.  In 2017, government contracts awarded decreased $481.7 million or 28.8 percent compared with the previous year (Table E-1).  State government CIP expenditures decreased $0.2 million or 90.3 percent in the first quarter of 2017 (Table E-2).  In 2017, CIP expenditures increased $151.3 million or 13.0 percent compared with the previous year.

The Honolulu Construction Cost Index declined 0.6 percent in the first quarter of 2018 compared to the same quarter of 2017 for Single Family Residence (Table     E-6) and declined 0.2 percent for High-Rise Building (Table E-7).  In 2017, the index for Single Family Residence increased 0.8 percent and 0.5 percent for High-Rise Building from the previous year.

In the first quarter of 2018, Honolulu’s median price for single family resales was $765,000, an increase of $15,000 or 2.0 percent compared to the same quarter of 2017 (Table E-11).  The median price for condominium units was $425,000, up $35,000 or 9.0 percent over the same quarter of 2017 (Table E-12).  In the first quarter of 2018, the number of single-family unit resales was down 0.4 percent, and the number of condominium unit resales was up 0.7 percent, compared with the first quarter of 2017 (Tables E-13 and E-14).  In 2017, the number of single-family unit resales was up 6.3 percent, and condominium unit resales was up 6.9 percent compared with the previous year.

In the first quarter of 2018, Maui County’s single-family unit resales median price was $684,350 or $12,650 and 1.8 percent lower than in the first quarter of 2017.  The condominium unit resales median price was $475,000 or $2,413 and 0.5 percent lower than in the same quarter of 2017.  (Tables E-17 and E-18).