The continuing recovery of Hawaii’s construction industry is expected to create more than 5,000 jobs in the sector over the next two years, according to a report issued Thursday by the state Department of Business, Economic Development and Tourism.

Construction was the hardest hit of Hawaii’s major industries in the 2008-2009 recession, and it has taken the longest to recover. The turnaround, which began in 2012 on Oahu, has slowly spread to the neighbor islands.

The construction sector is expected to be one of the "main engines" for Hawaii’s economic growth in 2014 and 2015, according to the report. Overall construction spending is forecast to grow by 12.4 percent in 2014 and 8.3 percent in 2015.

One of the reasons the construction industry has been slow to recover is a lack of residential construction, the report said.

"This report identifies a clear demand for more housing," said DBEDT Director Richard Lim.

Based on population growth of about 1 percent per year, or 14,000 new residents, Hawaii’s current housing need is about 5,500 new units per year, the study said. However, during the past five years the average increase in housing units was only 3,400 per year.

"The shortage is pushing up prices and limiting accessibility," Lim said. As construction rises to meet this demand we can expect increased jobs, revenue and economic growth."

The median price for a single-family home in Honolulu hit a record $650,000 in 2013, and the University of Hawaii Economic Research Organization is forecasting prices to rise another 11 percent this year based on factors that include relatively strong buyer demand, job growth and a lean inventory of available homes.

While residential construction is expected to pick up in the coming years, the biggest drivers will be infrastructure and large-scale commercial projects, according to the report. The two most prominent of these are the Oahu rail project and the redevelopment of Kakaako.

The construction industry is poised to build the homes needed to solve the shortage problem, said John White, executive director of Pacific Resource Partnership, an advocacy group for contractors and the Hawaii Carpenters Union.

"If we don’t build these homes, more and more residents will be forced to leave Hawaii because they cannot access housing they can afford," White said.

"We’re grateful for the opportunity to get our members back to work, but we’re mindful that we must grow in a balanced way — to build housing and create jobs, but protect the open spaces and places in Hawaii that are important to all of us."