Hawaii's economy is having a complicated year. Tourism is slow. Retail is cautious. Federal spending cuts have hit government employment. But construction is leading every other sector in job growth, and by a wide margin.
Both UHERO and DBEDT agree: construction payroll growth is outpacing every other part of Hawaii's economy in 2026. The work pipeline is longer than it has been in decades, and the biggest project the state has seen in years is now physically underway in Halawa.
Aloha Stadium is really happening
The New Aloha Stadium Entertainment District is a $4 billion public-private project on the old stadium site in Halawa. Demolition started in early 2026. New construction begins late 2026. The new stadium opens in 2029.
The general contractors are Hawaiian Dredging Construction Company and AECOM Hunt, working under the Aloha Halawa District Partners consortium with Castle and Cooke Hawaii and Wilson Okamoto Corp. Infrastructure work alone runs into the hundreds of millions.
The full plan includes 4,100 housing units, three hotel towers and retail rolling out through 2046. The state is putting in $350 million. The new 25,000-seat stadium hosts UH football and other events starting in 2029.
That is not even the whole story
Governor Josh Green committed to 10,000 new affordable housing units in the 2023-2026 window, with 64,000 more in the pipeline. Skyline rail is extending from Middle Street into Kaka'ako. Military construction on Oahu and at Camp Blaz in Guam keeps work flowing to Hawaii firms.
Construction material prices climbed at an annualized rate of 12% in early 2026. That is a real headwind for project budgets, but it has not slowed the volume of work coming to market.
What this means if you are a contractor
The problem is not finding work. It is capacity. Contractors with established crews, solid subcontractor relationships and good bonding capacity are in real demand right now. The $16 minimum wage affects the broader workforce market even if most construction workers earn above that. The $18 floor in 2028 is worth factoring into longer bids now.
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