E. Construction

3rd Quarter 2017 Report

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The indicators of Hawaii’s construction industry were mostly negative in the second quarter of 2017.  The private building authorizations, government contracts awarded, State CIP expenditures, and construction jobs all decreased.

Construction has been one of the steady contributors to job growth in Hawaii over the past few years.  However, in the second quarter of 2017, the construction sector lost 300 jobs or 0.8 percent, compared with the same quarter of 2016.  In the first half of 2017, the construction sector lost 500 jobs or 1.3 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 2017, private building authorizations in the state decreased $139.1 million or 14.5 percent, compared with the second quarter of 2016 (Table E-8).  In the first half of 2017, private building authorizations in the state increased $234.8 million or 15.6 percent compared with the same period of the previous year.

In the second quarter of 2017, private building authorizations in Honolulu decreased $50.4 million or 8.3 percent, compared with the second quarter of 2016 (Table E-8).  In the first half of 2017, private building authorizations in Honolulu increased $236.1 million or 24.9 percent, compared with the same period of the previous year.

In the second quarter of 2017, private building authorizations in Hawaii County decreased $111.2 million or 51.4 percent, compared with the second quarter of 2016 (Table E-8).  In the first half of 2017, private building authorizations in Hawaii County decreased $78.5 million or 25.6 percent, compared with the same period of the previous year.

In the second quarter of 2017, private building authorizations in Maui County increased $36.6 million or 39.1 percent, compared with the second quarter of 2016 (Table E-8).  In the first half of 2017, private building authorizations in Maui County increased $84.0 million or 45.2 percent compared with the same period of the previous year.

In the second quarter of 2017, private building authorizations (residential only) in Kauai decreased $14.1 million or 33.3 percent, compared with the second quarter of 2016 (Table E-8).  In the first half of 2017, private building authorizations in Kauai decreased $6.8 million or 10.5 percent compared with the same period of the previous year.

Government contracts awarded decreased $92.7 million or 28.2 percent in the second quarter of 2017 compared with the same quarter of 2016.  In the first half of 2017, government contracts awarded decreased $54.0 million or 10.7 percent compared with the same period of the previous year (Table E-1).  State government CIP expenditures decreased $152.1 million or 33.7 percent in the second quarter of 2017 (Table E-2).  In the first half of 2017, CIP expenditures decreased $148.0 million or 20.8 percent compared with the same period of the previous year.

The Honolulu Construction Cost Index increased 1.4 percent in the second quarter of 2017 compared to the same quarter of 2016 for Single Family Residence (Table E-6) and 1.2 percent for High-Rise Building (Table E-7).  In the first half of 2017 compared to 2016 the index for Single Family Residence increased 1.3 percent and 1.0 percent for High-Rise Building.

In the second quarter of 2017, Honolulu’s median price for single family resales was $754,000, an increase of $24,000 or 3.3 percent from the same quarter of 2016 (Table E-11).  The median price for condominium units was $403,000, up $13,000 or 3.3 percent from the same quarter of the previous year (Table E-12).  In the second quarter of 2017, the number of single-family unit resales was up 7.2 percent, and the number of condominium unit resales was up 5.2 percent, compared with the second quarter of 2016 (Tables E-13 and E-14).  In the first half of 2017, the number of single-family unit resales was up 4.4 percent, and condominium unit resales was up 6.0 percent compared with the same period of the previous year.

In the second quarter of 2017, Maui County single-family unit resales increased 6.8 percent, and condominium unit resales increased 3.9 percent compared to the same quarter of 2016 (Tables E-19 and E-20).