E. Construction

4th Quarter 2022 Report

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The indicators of Hawaii’s construction industry were mixed in the third quarter of 2022. Construction jobs and private building authorizations decreased in the quarter but Government contracts awarded and State government CIP expenditures increased.

In the third quarter of 2022, the number of jobs in the construction sector decreased 1.6 percent or 600 jobs compared with the same quarter of 2021. In the first three quarters of 2022, the construction sector lost 800 jobs or 2.2 percent (Table A-7) from the same period of the previous year.

In the third quarter of 2022, private building authorizations in the state decreased $154.5 million or 16.5 percent, compared with the third quarter of 2021 (Table E-8). In the first three quarters of 2022, private building authorizations in the state decreased $800.1 million or 25.9 percent compared with the same period of the previous year.

In the third quarter of 2022, private building authorizations in Honolulu decreased $178.7 million or 31.7 percent, compared with the third quarter of 2021 (Table E-8). In the first three quarters of 2022, private building authorizations in Honolulu decreased $809.8 million or 41.0 percent, compared with the same period of the previous year.

In the third quarter of 2022, private building authorizations in Hawaii County increased $112.8 million or 101.7 percent, compared with the third quarter of 2021 (Table E-8). In the first three quarters of 2022, private building authorizations in Hawaii County increased $110.3 million or 20.6 percent, compared with the same period of the previous year.

In the third quarter of 2022, private building authorizations in Maui decreased $83.9 million or 36.9 percent, compared with the third quarter of 2021 (Table E-8). In the first three quarters of 2022, private building authorizations in Maui decreased $90.9 million or 19.2 percent compared with the same period of the previous year.

In the third quarter of 2022, private building authorizations (residential only) in Kauai decreased $4.7 million or 13.1 percent, compared with the third quarter of 2021 (Table E-8). In the first three quarters of 2022, private building authorizations in Kauai County decreased $9.7 million or 9.4 percent compared with the same period of the previous year.

In the third quarter of 2022, government contracts awarded increased $504.6 million or 104.5 percent, compared with the third quarter of 2021 (Table E-1). In the first three quarters of 2022, government contracts awarded increased $4.2 billion or 334.6 percent compared with the same period of the previous year. A Navy contract was awarded in June 2022 that designated Hawaii as ‘place of performance’ for 95 percent or $945.3 million of the contract. The Navy awarded a $32.4 million contract in August; however, Hawaii was not designated as place of performance.

State government CIP expenditures increased $20.7 million or 6.5 percent in the third quarter of 2022 compared with the same quarter of 2021. In the first three quarters of 2022, state government CIP expenditures declined $17.1 million or 1.7 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 6.4 percent in the third quarter of 2022 compared to the same quarter of 2021 and similarly increased 6.8 percent for High-Rise Building (Table E-7). In the first three quarters of 2022, the index for Single Family Residence increased 6.1 percent and 6.0 percent for High-Rise Building as compared to the same period of the previous year.

Average home prices decreased 1.4 percent in the third quarter of 2022, with single family home prices down 4.2 percent and condo prices up 5.8 percent over the same quarter of the previous year (Table E-9). The purchase of homes decreased 19.7 percent for local buyers, declined 26.1 percent for mainland buyers, but increased 52.0 percent for foreign buyers over the same quarter of the previous year (Table E-10).

In the third quarter of 2022, Honolulu’s median price for single family resales was $1,110,500, up $80,500 or 7.8 percent over the same quarter of 2021 (Table E-11). The median price for condominium units was $500,000, up $16,000 or 3.3 percent over the same quarter of 2021 (Table E-12). In the third quarter of 2022, the number of single-family unit resales decreased 27.9 percent, and the number of condominium unit resales decreased 22.4 percent, compared with the third quarter of 2021 (Tables E-13 and E-14). In the first three quarters of 2022, the number of single-family unit resales decreased 15.8 percent, and condominium unit resales decreased 3.3 percent compared with the same period of the previous year.