Home Building & Remodeling Show Signals Increased Demand, Potential for Higher Contractor Fees

The upcoming BIA Hawaii Home Building & Remodeling Show, scheduled for January 2026 at the Blaisdell Center, serves as a key indicator for heightened consumer interest and investment in Hawaii's residential construction and renovation sector.

While this event primarily highlights opportunities for homeowners, its return signals a robust market for building professionals and underscores underlying trends in demand that can impact operating costs and revenue for businesses across related sectors. The show's presence suggests a proactive approach by industry stakeholders to engage with potential clients, meaning a more competitive landscape for securing projects and resources.

Who's Affected

• Small Business Operators (Contractors, Suppliers, Tradespeople): The show directly presents an opportunity to generate new leads and secure project pipelines for 2026 and beyond. However, increased demand spurred by such events can lead to a tightening of labor availability and a subsequent rise in wages, as well as potential increases in material costs due to higher consumption. Businesses must account for this tighter market when pricing bids and managing operational budgets. For suppliers, anticipate increased demand for materials, potentially requiring proactive inventory management and supplier negotiations.

• Real Estate Owners (Property Owners, Developers, Landlords): The emphasis on home transformation indicates a continued buoyancy in the real estate market, where property owners are investing in their assets to maintain or increase value. This trend supports property values and suggests a healthy market for renovations, which can translate to higher rental rates or stronger sale prices for updated properties. Developers might find it an opportune time to launch new projects or phases if they can secure reliable contractors.

• Investors: The staging of this significant industry event is a positive signal for the residential construction, renovation, and home services sectors. It suggests potential for growth and profitability. Investors may consider opportunities within these sectors, such as companies that provide construction services, building materials, or related technologies. However, increased demand could also signal higher operational costs for these businesses, which needs to be factored into investment analyses.

Second-Order Effects

The increased activity in home building and remodeling, stimulated by events like the BIA show, can have significant ripple effects in Hawaii's unique economic environment.

• Increased Demand for Labor → Wage Inflation → Higher Operating Costs for Businesses: A surge in renovation projects means a higher demand for skilled tradespeople (carpenters, electricians, plumbers). This scarcity, coupled with Hawaii's already high cost of living, drives up wages. For small business operators, this directly increases their overhead. This can lead to a situation where businesses must pass these increased labor costs onto clients through higher project bids, potentially making some renovations unaffordable for homeowners, or absorbing the costs, thus squeezing profit margins. For service businesses outside construction, the competition for labor could also affect their ability to attract and retain staff.

• Higher Material Consumption → Supply Chain Strain → Increased Material Costs: A boom in construction and remodeling strains the supply chains for lumber, concrete, fixtures, and other building materials. Given Hawaii's reliance on imports, this can lead to longer lead times and higher prices. These elevated costs reduce the profitability of construction projects and can extend project timelines, impacting real estate owners and investors who rely on timely completion.

What to Do

Given the WATCH action level, the focus is on monitoring key indicators and preparing for future market conditions.

• Small Business Operators (Contractors, Suppliers):

  • Monitor: Track lead generation from industry events and online platforms. Observe trends in material costs and labor availability. Review existing supplier contracts for potential price adjustments.
  • Prepare: Develop enhanced marketing strategies to stand out in a competitive lead environment for early 2026. Analyze current pricing models and potentially build in contingency for rising labor and material costs.

• Real Estate Owners:

  • Monitor: Stay informed about local construction permit application trends and average project durations. Assess current property market values and rental income potential.
  • Prepare: If planning renovations, begin researching and engaging with contractors early, anticipating higher demand and potentially longer wait times. Consider long-term financing or budgeting that accounts for inflation in construction costs.

• Investors:

  • Monitor: Observe growth in the home services and renovation sectors in Hawaii. Track the financial performance of publicly traded companies or private entities involved in the Hawaiian construction market.
  • Prepare: If interested in this sector, conduct thorough due diligence on companies that exhibit strong demand but also demonstrate robust cost management strategies. Evaluate the risk of project delays and cost overruns impacting returns.

Action Details

Monitor construction permit application volumes and average project completion times reported by county building departments. Additionally, track national and local indices for construction material prices (e.g., lumber, steel) and wage growth in the skilled trades. If permit applications show a sustained increase of over 10% quarter-over-quarter, and material/labor cost indices show a rise of over 5% annually, begin adjusting project bids and operational budgets to reflect these increased costs and potential for delayed timelines in late 2025 and early 2026.