The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Senate Committee on Public Safety and Military Affairs on Jan. 24, 2025.
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Jan. 24, 2025, 3 p.m.
Hawaii State Capitol
Conference Room 225 and Videoconference
To: Committee on Public Safety and Military Affairs
Sen. Brandon Elefante, Chair
Sen. Glenn Wakai, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: SB48 — RELATING TO THE STATE BUILDING CODE COUNCIL
Aloha Chair Elefante, Vice-Chair Wakai and other members of the Committee,
The Grassroot Institute of Hawaii supports SB48, which would direct the State Building Code Council to conduct a financial review of the potential impact new codes might have on single- and multi-family construction and utility costs.
In recent years, the construction cost of new single-family homes, apartments, condominiums and other residential dwellings in Hawaii has increased dramatically.
As measured by the state’s Honolulu Construction Cost Index, the cost for single-family homes in 2024 was 2.6 times higher than the cost in 2020. For highrises, the cost was 2.5 times higher.1
Hawaii’s strict land-use, zoning and permitting rules are a key driver of these costs. The Economic Research Organization at the University of Hawai‘i has estimated that regulations comprise 58% of the cost of new condominium construction.2
Requiring the State Building Code Council to review the potential financial effects of all new codes would help inform its decisions on which code changes to adopt. Hawaii’s county governments would also benefit from knowing how much residents might have to pay or could save as a result of code changes.
The National Association of Home Builders already reviews the potential financial effects of certain code changes, and could serve as a resource for the State Building Code Council to adapt to Hawaii’s specific climate, topographical and other concerns.
NAHB’s review of the 2024 International Residential Code, for example, identified a number of changes that would lower costs and others that would increase them.3
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] “Quarterly Statistical and Economic Report, 4th Quarter 2024,” Hawaii Department of Business, Economic Development & Tourism, pp. 107-108.
[2] Justin Tyndall and Emi Kim, “Why are Condominiums so Expensive in Hawai‘i?” Economic Research Organization at the University of Hawai‘i, May 2024, p. 11.
[3] “Estimated Costs of the 2024 IRC Code Changes,” Home Innovation Research Labs prepared for the National Association of Home Builders, July 2, 2024.
