THE ECONOMIC TUG-OF-WAR

A few months ago, we were getting a message of cautious optimism for the homebuilding industry. Now it seems it is just caution (and now, growing fear). I know that all of us who not only depend on but believe in the value of homebuilding and its critical role in our country and economy are worried about tariffs. Tariffs are particularly difficult for the Hawai’ian economy.

GROWING CONCERN

At the same time, the complex nature of our economy means that despite sticky inflation, rising unemployment, and decreased growth may induce the Fed to reduce interest rates, which would be good for homebuilding. But who knows and who can tell which of these competing forces will have what effect? It’s no wonder uncertainty reigns.

WHAT WE KNOW FOR SURE

And for all of that, we know two things with certainty. One, we need to build many more units of housing across the country--especially in Hawai’i. Two, housing attainability is worse than ever. We all know these things and I make it part of my job to pay attention to potential solutions - modular building, regulation reform, incentives, etc. I see little that looks like it will move the needle in a meaningful way any time soon. Though, taken together and pursued with energy, perhaps the solutions are in front of us.

SEARCHING FOR SOLUTIONS

This all may sound truly negative. It is. But, crisis is what drives innovation more than any other thing. I also believe those of us who’ve made our careers in homebuilding will almost surely be part of the solutions as they arise. We find ourselves, again, in trying times in spite of what should be a bright future. A final thing that I know, is we appreciate the partnership and collaborative spirit of all the builders, trades, and developers we work with.

Mahalo, 
Steve