Hawaii Housing Demand and Construction Growth
If you're following the Maui real estate market, you should know that a recent report indicated a demand for more housing in Hawaii. The report, which is centered on the construction industry, came from the state Department of Business, Economic Development and Tourism's Research and Economic Analysis Division.
As is evident to anyone who has been following the construction and real estate industries, the demand for housing in Hawaii is growing, as the current shortage is causing prices to rise. Inventories are lower than they've been in a very long time.
The report predicted the construction industry rising to meet this demand, which will increase jobs, revenue and economic growth. This is a good forecast to help you properly anticipate upcoming changes in the Maui real estate market. Our state is one of the lowest in the nation for real estate flipping, which generally involves ownership to about six months before resale at a profit. Still, there are good real estate investments to be made, whether you want a full-time or part time Maui residence, or you'd prefer to use your property as a vacation rental.
The forecasts in the report are based on thorough examination of the past performance of Hawaii's construction industry. This is the first report to forecast future construction growth in almost 14 years. The report cited that the construction industry added 2,500 jobs in 2013, which was more than any other industry, and it will continue to be one of the main sectors to grow through 2014 and 2015. In fact, another 2,500 new jobs are anticipated in construction this year.
The fun part is comparing these reports to the actual performance of the economy and the industry specified. Studying past performance is a reliable way to predict the future, but there are always unforeseen circumstances. Hopefully, the economy will strengthen even more than predicted, and our South Maui real estate will thrive.
Mahalo for reading this week, and if you need assistance with your Maui real estate search, you'll find our contact information at the bottom of the page. Mahalo!
RealEstateMauiHawaii.com - By Mark Harbison