While the external environment has become decidedly more risky since last fall, this forecast makes only a small downward revision to the forecast path. Construction employment and income will slow to very small positive gains this year, before turning negative in 2009. Some downward drift in home prices will occur, but Hawai’i will avoid the large-scale contraction that is occurring in many mainland cities that must work off home price bubbles. The overall construction cycle will continue to be stabilized by relative strength in nonresidential segments of the industry.
