In Honolulu, construction cost indices have shown steady increases through 2024 and into 2025. The Honolulu Construction Cost Index rose approximately 4–5% year‑over‑year for both single‑family residences and high‑rise buildings in early to mid‑2025, reflecting ongoing upward pressure on base construction costs.([dbedt.hawaii.gov](https://dbedt.hawaii.gov/economic/qser/construction/?utm_source=openai))
These cost trends are driven by Honolulu’s geographic isolation, reliance on imported materials, and a limited local labor pool—factors that consistently elevate baseline construction expenses compared to mainland markets.([rlb.com](https://www.rlb.com/americas/insight/rlb-construction-cost-report-hawaii-q3-2025/?utm_source=openai))
Prevailing wage schedules for public projects in Hawaii are updated biannually (around February and September), and contractors must adhere to these rates for laborers, journeymen, and subcontractors on state and county projects.([labor.hawaii.gov](https://labor.hawaii.gov/wsd/prevailing-wages-wage-rate-schedule/?utm_source=openai))
Statewide, construction payroll jobs increased by over 9% in 2024, and continued growth into 2025 reflects strong demand for skilled trades.([thehonoluluherald.com](https://www.thehonoluluherald.com/article/791397378-dbedt-reduces-hawaii-economic-growth-rate-to-1-7-percent-for-2025?utm_source=openai))
Additionally, new project labor agreement (PLA) mandates for state construction projects over $1.5 million may elevate labor costs by requiring union‑level wages and terms, potentially increasing public project costs by 12–20%.([grassrootinstitute.org](https://www.grassrootinstitute.org/2024/03/your-cost-of-living-just-went-up/?utm_source=openai))
While specific daily, weekly, or monthly equipment rental rates are not publicly aggregated, Honolulu’s equipment hire costs are generally higher than mainland averages due to shipping, handling, and limited local supply. Contractors should anticipate elevated rates for heavy machinery, cranes, and earth‑moving equipment, particularly for extended rental periods.
Honolulu’s construction sector remains a key economic driver. In 2024, the state’s contracting tax base reached approximately $14 billion, with private building permits surging in early 2025—residential permits rose nearly 68%, and commercial/industrial permits increased nearly 490%. Honolulu County led residential unit authorizations with a 134% increase.([dbedt.hawaii.gov](https://dbedt.hawaii.gov/blog/25-20/?utm_source=openai))
Despite strong activity, Honolulu County saw a dip in private building authorizations in Q3 2025, though overall year‑to‑date figures remain positive.([dbedt.hawaii.gov](https://dbedt.hawaii.gov/economic/qser/construction/?utm_source=openai))
Major infrastructure projects—such as the Honolulu Skyline rail expansion and redevelopment of Aloha Stadium—are anchoring demand for labor, materials, and equipment, sustaining upward pressure on costs.([rlb.com](https://www.rlb.com/americas/insight/rlb-construction-cost-report-hawaii-q2-2025/?utm_source=openai))
This City Hub page provides a high‑level overview of cost dynamics in Honolulu’s construction market. It highlights rising base construction costs, labor trends influenced by prevailing wages and PLA mandates, elevated equipment hire expectations, and key local cost drivers such as permitting delays and regulatory fees. The content is designed to guide contractors and construction managers toward more informed budgeting and planning, with links to detailed spokes for cost tables and rate breakdowns.
