E. Construction

1st Quarter 2018 Report

Download Construction Data Tables (spreadsheet)

The indicators of Hawaii’s construction industry were mixed in the fourth quarter of 2017.  The private building authorizations, and government contracts awarded decreased, however, construction jobs and the State CIP expenditures increased.

Construction has been one of the steady contributors to job growth in Hawaii over the past few years.  In the fourth quarter of 2017, the construction sector added 1,000 jobs or 2.7 percent, compared with the same quarter of 2016.  In 2017, the construction sector lost 200 jobs or 0.5 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 fourth quarter of 2017, private building authorizations in the state decreased $180.6 million or 21.4 percent, compared with the fourth quarter of 2016 (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 fourth quarter of 2017, private building authorizations in Honolulu decreased $203.6 million or 36.2 percent, compared with the fourth quarter of 2016 (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 fourth quarter of 2017, private building authorizations in Hawaii County increased $43.8 million or 34.9 percent, compared with the fourth quarter of 2016 (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 fourth quarter of 2017, private building authorizations in Maui County decreased $21.4 million or 17.3 percent, compared with the fourth quarter of 2016 (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 fourth quarter of 2017, private building authorizations (residential only) in Kauai increased $0.6 million or 1.6 percent, compared with the fourth quarter of 2016 (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 decreased $159.0 million or 62.0 percent in the fourth quarter of 2017 compared with the same quarter of 2016.  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 increased $175.9 million or 90.3 percent in the fourth 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 increased 0.3 percent in the fourth quarter of 2017 compared to the same quarter of 2016 for Single Family Residence (Table E-6) and 0.0 percent for High-Rise Building (Table E-7). In 2017 compared to 2016, the index for Single Family Residence increased 0.8 percent and 0.5 percent for High-Rise Building.

In 2017, Honolulu’s median price for single family resales was $750,000, an increase of $20,000 or 2.7 percent compared to 2016 (Table E-11).  The median price for condominium units was $405,000, up $15,000 or 3.8 percent over the previous year (Table E-12).  In the fourth quarter of 2017, the number of single-family unit resales was up 8.0 percent, and the number of condominium unit resales was up 5.6 percent, compared with the fourth quarter of 2016 (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 2017, Maui County the single-family unit resales median price was $695,000 or $56,000 and 1.9 percent higher than in 2016.  The condominium unit resales median price was $445,000 or $30,000 and 7.2 percent higher than in 2016.  (Tables E-17 and E-18).