Demand for material house bonds (MHBs) is spiking this year at HPM Building Supply (HPM) and and Honsador Lumber LLC, two top Hawai‘i vendors.
HPM and Honsador Lumber offer MHBs that guarantee a new residential project will be constructed as specified in its contract.
“The Hawai‘i material bond market is experiencing robust growth in 2025, with HPM already processing 116 percent more bonds year-to-date compared to all of 2024,” says Darlene Yoshida, HPM Building Supply bonding and credit manager.
Jadine Pereza, Honsador Lumber bond supervisor, agrees. “We’ve had a high volume of bonds throughout the year,” she says.
Hawai‘i Island, O‘ahu Lead 2025 MHBs
Both vendors report Hawai‘i island and O‘ahu are experiencing the state’s strongest demand.
“Hawai‘i island continues to lead in material bond activity, reflecting ongoing residential and commercial development. O‘ahu is showing steady growth at a more moderate pace,” Yoshida says.
Pereza confirms Honsador Lumber’s bonding department “has been busier this year on O‘ahu and the Big Island.”
As with building materials, package homes offered by these two vendors can be bonded by MHBs for homeowners seeking financing through a Hawai‘i lending institution.
No Fees for MHBs
MHBs are regulatory instruments and not fee-based services, so neither HPM nor Honsador Lumber charge a fee for MHBs.
MHBs are also not directly affected by tariffs.
“However, tariffs do indirectly impact builders through increased material costs. Steel tariffs earlier this year resulted in higher overall contract values,” reports Yoshida.
This “affects the contract prices that we provide bonds for,” Pereza explains.
Higher Building Material Costs in November?
If new U.S. tariffs scheduled for November take effect, “we anticipate both direct and indirect cost impacts that will likely increase material house bond amounts,” Yoshida says.
HPM expects the new tariffs to directly impact imported finished goods such as lighting, plumbing fixtures, air conditioning systems, household appliances, flooring and cabinetry.
Yoshida says indirect impacts to domestically produced goods may result in price increases “due to their reliance on imported raw materials or reduced competition from lower-priced imports.”
The good news? “We don’t expect significant effects on framing lumber, which represents a substantial portion of residential construction costs in Hawai‘i,” Yoshida says.
How to Apply for an MHB
When a contractor applies for an MHB, Honsador Lumber verifies that the contractor is licensed and experienced, has a healthy financial position and has “costed the job well and effectively budgeted it,” Pereza says.
At HPM, contractors applying for an MHB are evaluated “based on demonstrated financial stability, satisfactory credit standing and proven experience with similar project types and scopes,” says Yoshida.
“We assess the contractor’s track record, project budget, building material requirements and overall credentials to ensure they can successfully complete the proposed work,” which includes HPM Home package-home projects, she says.
Current strong MHB activity, Yoshida adds, “indicates healthy construction momentum across Hawai‘i’s major markets, with material bonds serving as a reliable indicator of project pipeline strength.”
To reach HPM bonding
specialists, go to:
hpmhawaii.com/bonding
On Hawai‘i island: 808-966-5466
On Maui, O‘ahu and Kaua‘i: 808-435-9169
To reach Honsador Lumber
bonding specialists, go to:
honsador.com/services/bonding
Honsador Lumber Bonding Supervisor Jadine Pereza: jpereza@honsador.com, 808-792-8653
Jessica Benedicto: jjones@honsador.com,
808-792-6420
