Hawaii's population declines again

For the first time since statehood in 1959, Hawaii’s population declined for two consecutive years with fewer births, more deaths and a greater number of residents moving to the mainland.

The trend is alarming because without enough people economic growth could be affected, said Eugene Tian, state economist with Department of Business, Economic Development and Tourism.

“That is something significant because with fewer people it helps a little bit in the housing shortage, but there will definitely be less spending consumption and that will reduce economic growth,” said Tian, adding that 70 percent of gross domestic product is due to consumer spending. “Because the U.S. economy in the last two years has been growing faster than in Hawaii, people are looking for more opportunities and a lower cost of living.”

Hawaii was one of only nine states with waning populations, the latest Census Bureau report released this week shows. The others were Alaska, New York, Connecticut, Illinois, Louisiana, Mississippi, Wyoming and West Virginia.

That comes with all sorts of implications, including a decreasing demand for housing, which could lead to a slowdown or drop in home prices, as well as a shrinking workforce in an already tight labor market. The unemployment rate in the islands has hovered around 2 percent for most of the past year.

The state population dropped by 3,712, or 10 people per day, from July 2017 to July 2018. There were 17,326 births, 12,660 deaths and 4,075 people migrating to the islands from foreign countries. However, 12,430 residents left Hawaii for the mainland during that same period.