Things are certainly looking up these days for the local economy!
According to a recently released report by the state’s Department of Business, Economic Development and Tourism (DBEDT), Hawai’i’s economic growth over the coming year and into 2023 is expected to outpace the national rate, per their projections. While the nation’s rate of overall economic growth was slower across the mainland—being revised downward from 3.7% to 2.6% in May, according to projections published in Blue Chip Economic Indicators—the state of Hawai’i held steady during the first quarter of 2022, coming in at 3.2% overall.
The state’s DBEDT noted that the tourism industry continues to recover, as domestic travel to the Aloha State officially exceeded the pre-Covid tallies of 2019. During the first four months of this year, visitors to the islands originating from the U.S. mainland were over 13% higher than the same period in 2019—and the return of Japanese travelers are set to grow even higher. Furthermore, overall employment has increased across the islands and the construction industry remains busy. While inflation remains high overall, and some labor shortages in critical industries have limited growth opportunities, Hawai’i’s economic recovery continues an overall healthy trajectory thus far as 2022 rolls onward.
“Hawai‘i’s economic recovery continues on a healthy path. In terms of real gross domestic product, our non-tourism sector has fully recovered while the tourism sector is showing strong recovery from the COVID-19 pandemic. Domestic travel remains strong although competition from other destinations will impact visitor arrival numbers. Japan visitors will slowly return to the Hawaiian Islands with the reduction of travel restrictions imposed by the Japanese government,” said department Director Mike McCartney.
How might this affect the housing market?
When it comes to the ongoing hot streak being enjoyed by sellers in the current housing market, the impacts of the state’s continuing bounce-back are likely to principally impact the construction of badly needed new housing. As such, the rise in construction and overall economic stability may help to (eventually) alleviate the housing crunch and lack of inventory that have been major contributors to sending statewide prices sky-high…but these things take time, and it’s likely anybody’s guess exactly when this will occur.
Overall, while we may see prices stabilize or even come down a bit at some point in the future, they’re not likely to dip all that far, either. After all, the Big Island remains one of the world’s most sought-after destinations for a reason—and you know what they say: location, location, location! With the pandemic freeing up many workers to choose their own geographic destinies, the Big Island stands head and shoulders above the competition, which is why you’ll need an experienced realtor to help see you through the purchase—or the sale—of your next home. Give Karen Bail a call and let’s get started on turning those island dreams into a reality today!