E. Construction

3rd Quarter 2022 Report

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The indicators of Hawaii’s construction industry were mixed in the second quarter of 2022. Construction jobs, and private building authorizations decreased in the quarter, while government contracts awarded increased.

In the second quarter of 2022, the number of jobs in the construction sector decreased 3.5 percent or 1,300 jobs compared with the same quarter of 2021. In the first half of 2022, the construction sector lost 950 jobs or 2.6 percent (Table A-7) from the same period of the previous year.

In the second quarter of 2022, private building authorizations in the state decreased $711.0 million or 52.8 percent, compared with the second quarter of 2021 (Table E-8). In the first half of 2022, private building authorizations in the state decreased $645.6 million or 30.0 percent compared with the same period of the previous year.

In the second quarter of 2022, private building authorizations in Honolulu decreased $634.6 million or 69.0 percent, compared with the second quarter of 2021 (Table E-8). In the first half of 2022, private building authorizations in Honolulu decreased $631.8 million or 44.8 percent, compared with the same period of the previous year.

In the second quarter of 2022, private building authorizations in Hawaii County decreased $24.3 million or 9.3 percent, compared with the second quarter of 2021 (Table E-8). In the first half of 2022, private building authorizations in Hawaii County decreased $2.4 million or 0.6 percent, compared with the same period of the previous year.

In the second quarter of 2022, private building authorizations in Maui decreased $58.2 million or 40.8 percent, compared with the second quarter of 2021 (Table E-8). In the first half of 2022, private building authorizations in Maui decreased $7.0 million or 2.9 percent compared with the same period of the previous year.

In the second quarter of 2022, private building authorizations (residential only) in Kauai increased $6.0 million or 26.0 percent, compared with the second quarter of 2021 (Table E-8). In the first half of 2022, private building authorizations in Kauai County decreased $4.9 million or 7.4 percent compared with the same period of the previous year.

In the second quarter of 2022, government contracts awarded increased $4,247.2 million or 1,544.9 percent, compared with the second quarter of 2021 (Table E-1). In the first half of 2022, government contracts awarded increased $3,974.3 million or 517.2 percent compared with the same period of the previous year. This growth was partially fueled by a Navy contract awarded in June that designated Hawaii as ‘place of performance’ for 95 percent or $945.3 M of the contract. The remainder is designated for Wake Island.

State government CIP expenditures declined $91.8 million or 20.8 percent in the second quarter of 2022 compared with the same quarter of 2021. In the first half of 2022, state government CIP expenditures declined $37.8 million or 5.4 percent from the same period of the previous year (Table E-2).

The Honolulu Construction Cost Index for Single Family Residence (Table E-6) increased 6.0 percent in the second quarter of 2022 compared to the same quarter of 2021 and similarly increased 6.2 percent for High-Rise Building (Table E-7). In the first half of 2022, the index for Single Family Residence increased 6.0 percent and 5.5 percent for High-Rise Building as compared to the same period of the previous year.

Average home prices continued to rise in the second quarter of 2022, with single family home prices up 12.8 percent and condo prices up 11.3 percent over the same quarter of the previous year (Table E-9). The purchase of homes by out-of-state buyers and local buyers both decreased: purchases decreased 10.9 percent for local buyers, declined 15.7 percent for mainland buyers, and decreased 6.5 percent for foreign buyers over the same quarter of the previous year (Table E-10).

In the second quarter of 2022, Honolulu’s median price for single family resales was $1,123,500, up $163,500 or 17.0 percent over the same quarter of 2021 (Table E-11). The median price for condominium units was $520,000, up $62,500 or 13.7 percent over the same quarter of 2021 (Table E-12). In the second quarter of 2022, the number of single-family unit resales decreased 13.4 percent, and the number of condominium unit resales increased 0.7 percent, compared with the second quarter of 2021 (Tables E-13 and E-14). In the first half of 2022, the number of single-family unit resales decreased 8.8 percent, and condominium unit resales increased 7.5 percent compared with the same period of the previous year.