E. Construction

3rd Quarter 2021 Report

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The indicators of Hawaii’s construction industry were mixed in the second quarter of 2021. Private building authorizations and construction jobs increased, but government contracts awarded and state government CIP expenditures decreased in the quarter.

In the second quarter of 2021, the number of jobs in the construction sector increased 4.5 percent or 1,600 jobs compared with the same quarter of 2020. In the first half of 2021, the construction sector added 750 jobs or 2.1 percent (Table A-7) from the same period of the previous year.

In the second quarter of 2021, private building authorizations in the state increased $652.7 million or 94.2 percent, compared with the second quarter of 2020 (Table E-8). In the first half of 2021, private building authorizations in the state increased $670.6 million or 45.4 percent compared with the same period of the previous year.

In the second quarter of 2021, private building authorizations in Honolulu increased $563.2 million or 158.2 percent, compared with the second quarter of 2020 (Table E-8). In the first half of 2021, private building authorizations in Honolulu increased $615.6 million or 77.5 percent, compared with the same period of the previous year.

In the second quarter of 2021, private building authorizations in Hawaii County increased $93.7 million or 56.1 percent, compared with the second quarter of 2020 (Table E-8). In the first half of 2021, private building authorizations in Hawaii County increased $92.9 million or 28.0 percent, compared with the same period of the previous year.

In the second quarter of 2021, private building authorizations in Maui increased $8.9 million or 6.7 percent, compared with the second quarter of 2020 (Table E-8). In the first half of 2021, private building authorizations in Maui decreased $33.2 million or 11.9 percent compared with the same period in 2020.

In the second quarter of 2021, private building authorizations (residential only) in Kauai decreased $13.2 million or 36.2 percent, compared with the second quarter of 2020 (Table E-8). In the first half of 2021, private building authorizations in Kauai County decreased $4.7 million or 6.6 percent compared with the same period of the previous year.

Government contracts awarded decreased $307.5 million or 52.8 percent, from $582.4 million in the second quarter of 2020 to $274.9 million in the second quarter of 2021 (Table E-1). In the first half of 2021, government contracts awarded decreased $1,456.3 million or 75.7 percent, from $1,924.7 million in the first half of 2020 to $468.4 million in the first half of 2021. The first half of 2020 reflects a January 2020 U.S. Navy award of a 5-year contract of a $990 million awarded to 7 firms, 5 of which were Hawaii firms. No per-firm awards were specified. State government CIP expenditures decreased $29.1 million or 6.2 percent in the second quarter of 2021 compared with the same quarter of 2020. In the first half of 2021, state government CIP expenditures decreased $87.9 million or 11.1 percent from the same period of the previous year (Table E-2).

The Honolulu Construction Cost Index increased 3.4 percent in the second quarter of 2021 compared to the same quarter of 2020 for Single Family Residence (Table E-6) and increased 3.3 percent for High-Rise Building (Table E-7). In the first half of 2021, the index for Single Family Residence increased 3.2 percent and 2.8 percent for High-Rise Building as compared to the same period of the previous year.

In the second quarter of 2021, Honolulu’s median price for single family resales was $960,000, up $169,500 or 21.4 percent over the same quarter of 2020 (Table E-11). The median price for condominium units was $457,500, up $32,500 or 7.6 percent over the same quarter of 2020 (Table E-12). In the second quarter of 2021, the number of single-family unit resales increased 54.3 percent, and the number of condominium unit resales increased 117.1 percent, compared with the second quarter of 2020 (Tables E-13 and E-14). In the first half of 2021, the number of single-family unit resales increased 32.9 percent, and condominium unit resales increased 70.7 percent compared with the same period of the previous year.

In the first half of 2021, Maui County’s single-family unit resales median price was $986,000, or a 28.9 percent increase from the same half of 2020. The condominium unit resales median price was $620,000, or a 9.0 percent increase from the same half of 2020 (Tables E-17 and E-18).