E. Construction

2nd Quarter 2019 Report

Download Construction Data Tables (spreadsheet)

The indicators of Hawaii’s construction industry were mixed in the first quarter of 2019. The private building authorizations, state government CIP expenditures, and construction jobs increased, while the government contracts awarded decreased.

Construction has been one of the steady contributors to job growth in Hawaii over the past few years. In the first quarter of 2019, the number of jobs in the construction sector increased 1.1 percent or 400 jobs compared with the same quarter of 2018. In 2018, the construction sector lost 100 jobs or 0.3 percent (Table A-7) from 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 first quarter of 2019, private building authorizations in the state increased $61.2 million or 8.7 percent, compared with the first quarter of 2018 (Table E-8). In 2018, private building authorizations in the state increased $140.5 million or 4.5 percent compared with the previous year.

In the first quarter of 2019, private building authorizations in Honolulu increased $130.1 million or 33.0 percent, compared with the first quarter of 2018 (Table E-8). In 2018, private building authorizations in Honolulu decreased $22.2 million or 1.1 percent, compared with the previous year.

In the first quarter of 2019, private building authorizations in Hawaii County decreased $16.2 million or 11.4 percent, compared with the first quarter of 2018 (Table E-8). In 2018, private building authorizations in Hawaii County increased $81.4 million or 16.4 percent, compared with the previous year.

In the first quarter of 2019, private building authorizations in Maui County decreased $45.6 million or 36.0 percent, compared with the first quarter of 2018 (Table E-8). In 2018, private building authorizations in Maui County increased $82.3 million or 17.2 percent compared with the previous year.

In the first quarter of 2019, private building authorizations (residential only) in Kauai County decreased $7.1 million or 18.8 percent, compared with the first quarter of 2018 (Table E-8). In 2018, private building authorizations in Kauai County decreased $1.1 million or 0.8 percent compared with the previous year.

Government contracts awarded decreased $376.5 million or 70.7 percent in the first quarter of 2019 compared with the same quarter of 2018. In 2018, government contracts awarded increased $756.9 million or 63.5 percent compared with the previous year (Table E-1). State government CIP expenditures increased $32.8 million or 12.5 percent in the first quarter of 2019 compared with the same quarter of 2018 (Table E-2). In 2018, CIP expenditures increased $324.9 million or 24.8 percent compared with the previous year.

The Honolulu Construction Cost Index increased 1.9 percent in the first quarter of 2019 compared to the same quarter of 2018 for Single Family Residence (Table E-6) and increased 1.7 percent for High-Rise Building (Table E-7). In 2018, the index for Single Family Residence increased 0.4 percent and 0.5 percent for High-Rise Building from the previous year.

In the first quarter of 2019, Honolulu’s median price for single family resales was $780,000, an increase of $15,000 or 2.0 percent compared to the same quarter of 2018 (Table E-11). The median price for condominium units was $411,250, down $13,750 or 3.2 percent over the same quarter of 2018 (Table E-12). In the first quarter of 2019, the number of single-family unit resales declined 5.7 percent, and the number of condominium unit resales declined 10.5 percent, compared with the first quarter of 2018 (Tables E-13 and E-14). In 2018, the number of single-family unit resales declined 7.7 percent, and condominium unit resales declined 2.5 percent compared with the previous year.

In the first quarter of 2019, Maui County’s single-family unit resales median price was $735,000 or $52,532 and 7.7 percent higher than in the first quarter of 2018. The condominium unit resales median price was $525,000 or $48,750 and 10.2 percent higher than in the same quarter of 2018. (Tables E-17 and E-18).