E. Construction

3rd Quarter 2018 Report

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The indicators of Hawaii’s construction industry were mostly positive in the second quarter of 2018. The private building authorizations, the government contracts awarded, and State CIP expenditures all increased, and construction jobs remain unchanged.

Construction has been one of the steady contributors to job growth in Hawaii over the past few years. In the second quarter of 2018, the number of jobs in the construction sector was unchanged compared with the same quarter of 2017. In the first half of 2018, the construction sector added 50 jobs or 0.1 percent (Table A-7) from the same period of 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 second quarter of 2018, private building authorizations in the state increased $287.6 million or 35.0 percent, compared with the second quarter of 2017 (Table E-8). In the first half of 2018, private building authorizations in the state increased $67.9 million or 3.9 percent compared with the same period of the previous year.

In the second quarter of 2018, private building authorizations in Honolulu increased $197.9 million or 35.5 percent, compared with the second quarter of 2017 (Table E-8). In the first half of 2018, private building authorizations in Honolulu decreased $36.0 million or 3.0 percent, compared with the same period of the previous year.

In the second quarter of 2018, private building authorizations in Hawaii County increased $9.6 million or 9.1 percent, compared with the second quarter of 2017 (Table E-8). In the first half of 2018, private building authorizations in Hawaii County increased $28.2 million or 12.4 percent, compared with the same period of the previous year.

In the second quarter of 2018, private building authorizations in Maui County increased $60.8 million or 46.7 percent, compared with the second quarter of 2017 (Table E-8). In the first half of 2018, private building authorizations in Maui County increased $48.0 million or 17.8 percent compared with the same period of the previous year.

In the second quarter of 2018, private building authorizations (residential only) in Kauai increased $19.2 million or 67.8 percent, compared with the second quarter of 2017 (Table E-8). In the first half of 2018, private building authorizations in Kauai increased $27.6 million or 48.0 percent compared with the same period of the previous year.

Government contracts awarded increased $362.2 million or 153.3 percent in the second quarter of 2018 compared with the same quarter of 2017. In the first half of 2018, government contracts awarded increased $680.9 million or 151.3 percent compared with the same period of the previous year (Table E-1). State government CIP expenditures increased $291.3 million or 97.1 percent in the second quarter of 2017 (Table E-2). In the first half of 2018, CIP expenditures increased $291.1 million or 51.7 percent compared with the same period of the previous year.

The Honolulu Construction Cost Index declined 0.1 percent in the second quarter of 2018 compared to the same quarter of 2017 for Single Family Residence (Table E-6) but was unchanged for High-Rise Building (Table E-7). In the first half of 2018, the index for Single Family Residence declined 0.4 percent and 0.1 percent for High-Rise Building from the same period of the previous year.

In the second quarter of 2018, Honolulu’s median price for single family resales was $781,194, an increase of $27,194 or 3.6 percent compared to the same quarter of 2017 (Table E-11). The median price for condominium units was $421,000, up $18,000 or 4.5 percent over the same quarter of 2017 (Table E-12). In the second quarter of 2018, the number of single-family unit resales was down 2.6 percent, and the number of condominium unit resales was up 1.7 percent, compared with the second quarter of 2017 (Tables E-13 and E-14). In the first half of 2018, the number of single-family unit resales was down 1.6 percent, and condominium unit resales was up 1.3 percent compared with the same period of the previous year.

In the first half of 2018, Maui County’s single-family unit resales median price was $690,000 or $15,000 and 2.1 percent lower than in the first half of 2017. The condominium unit resales median price was $495,000 or $20,000 and 4.2 percent higher than in the same half of 2017. (Tables E-17 and E-18).