Research & Economic Analysis

3rd Quarter 2023 Report

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The indicators of Hawaii’s construction industry were mixed in the second quarter of 2023. Construction jobs and private building authorizations increased in the quarter, however, government contracts awarded and State government CIP expenditures decreased.

In the second quarter of 2023, the number of jobs in the construction sector increased by 0.3 percent or by 100 jobs compared with the same quarter of 2022. In 2022, the construction sector added 200 jobs or 0.5 percent (Table A-7) from the previous year.

In the second quarter of 2023, private building authorizations in the state increased $311.8 million or 49.1 percent, compared with the second quarter of 2022 (Table E-8). In 2022, private building authorizations in the state decreased $167.8 million or 4.5 percent compared with the previous year.

In the second quarter of 2023, private building authorizations in Honolulu increased $152.9 million or 53.7 percent, compared with the second quarter of 2022 (Table E-8). In 2022, private building authorizations in Honolulu decreased $243.9 million or 10.8 percent, compared with the previous year.

In the second quarter of 2023, private building authorizations in Hawaii County increased $17.9 million or 7.6 percent, compared with the second quarter of 2022 (Table E-8). In 2022, private building authorizations in Hawaii County increased $128.1 million or 17.6 percent, compared with the previous year.

In the second quarter of 2023, private building authorizations in Maui increased $131.0 million or 155.3 percent, compared with the second quarter of 2022 (Table E-8). In 2022, private building authorizations in Maui decreased $63.6 million or 10.0 percent compared with the previous year.

In the second quarter of 2023, private building authorizations (residential only) in Kauai increased $10.0 million or 34.2 percent, compared with the second quarter of 2022 (Table E-8). In 2022, private building authorizations in Kauai County increased $11.6 million or 8.9 percent compared with the previous year.

In the second quarter of 2023, government contracts awarded decreased $2,336.6 million or 74.5 percent, compared with the second quarter of 2022 (Table E-1). In 2022, government contracts awarded increased $3,125.7 million or 179.4 percent compared with the previous year. State government CIP expenditures decreased $32.0 million or 9.1 percent in the second quarter of 2023 compared with the same quarter of 2022. In 2022, state government CIP expenditures declined $21.4 million or 1.6 percent from the previous year (Table E-2).

The Honolulu Construction Cost Index for Single Family Residence (Table E-6) increased_3.4 percent in the first quarter of 2023 compared to the same quarter of 2022 and similarly increased 4.3 percent for High-Rise Building (Table E-7). In 2022, the index for Single Family Residence increased 6.2 percent and 6.1 percent for High-Rise Building as compared to the previous year.

Average home prices decreased by 8.2 percent in the second quarter of 2023, with single family home prices down by 14.4 percent and condo prices down by 1.4 percent over the same quarter of the previous year (Table E-9). The purchase of homes decreased by 32.8 percent for local buyers, declined 29.8 percent for mainland buyers, and decreased 32.4 percent for foreign buyers over the same quarter of the previous year (Table E-10).

In the second quarter of 2023, Honolulu’s median price for single family resales was $1,050,000, down $73,500 or 6.5 percent over the same quarter of 2022 (Table E-11). The median price for condominium unit resales was $500,000, down $20,000 or 3.8 percent over the same quarter of 2022 (Table E-12). In the second quarter of 2023, the number of single-family unit resales decreased 80.5 percent, and the number of condominium unit resales decreased 78.9 percent, compared with the second quarter of 2022 (Tables E-13 and E-14). In 2022, the number of single-family unit resales decreased 23.2 percent, and condominium unit resales decreased 11.8 percent compared with the previous year.