Construction industry in Hawai‘i marks second-strongest first quarter in past decade

Hawai‘i’s construction industry posted its second-strongest first quarter in the past decade. However, a significant decrease in housing activity is raising concern.

The Quarterly Hawai‘i Construction Market Update recently released by Pacific Resource Partnership showed total spending reaching about $2.09 billion. The robust result was more than the $1.84 billion for the first quarter of 2025 as well as the $781 million in fourth quarter 2025.

But despite the positive start this year to construction spending, there was a significant decrease in housing activity — with single-family housing down $126 million and multi-family housing at $229 million less — compared with the first quarter of 2025.

“Although we could see an upswing in construction activity for single-family and multi-family housing during the rest of the year, it’s critical for our policymakers to focus on building new homes,” said Pacific Resource Partnership Executive Director Nathaniel Kinney in a release about the construction market analysis. “Hawai‘i needs more than 64,000 housing units just to catch up. That means lawmakers should focus on easing the regulatory burden on our homebuilders, investing in infrastructure for new homes and fully committing ourselves to transit-oriented development.”

TOTAL CONSTRUCTION BY ISLAND (FIRST QUARTER 2026)

• O‘ahu: $1.62 billion
• Hawai‘i Island: $232 million
• Maui: $170 million
• Kaua‘i: $73 million

Public works projects, particularly large state-level infrastructure initiatives, continued to serve as the primary driver for construction activity during the first 3 months of the year.

Federal construction projects totaled just $1 million, although spending in this sector is expected to pick up as the year progresses.

Meanwhile, private construction decreased compared with last year, from $1.17 billion in 2025 to $857 million for the first quarter of 2026.

A notable absence is the renewable energy market segment, with no activity recorded as of the end of April.

Construction remains as one of the “bright spots” in the state’s economy — as noted in the most recent economic forecast by University of Hawai‘i Economic Research Organization — with labor demand expected to remain strong and a workforce consisting of more than 41,000 people.

KEY ISLAND HIGHLIGHTS (FIRST QUARTER 2026)

• O‘ahu continued to lead statewide construction activity, driven largely by major highway projects.
• Hawai‘i County saw steady public works activity, with major infrastructure projects — such as wastewater treatment upgrades — moving forward.
• Maui activity was dominated by public projects, with multi-family housing slowing from 2025 levels.
• Kaua‘i recorded one of its slower quarters in recent years, with construction heavily concentrated in county and state public sector projects.

Read the complete report and get additional information at the Pacific Resource Partnership website.