QUAKERTOWN, PA-An improved economy, along with massive reconstruction efforts underway from the devastation caused by Hurricane Sandy, are driving up construction costs in the Pennsylvania, New Jersey and New York areas, according to one specialist.

While nationwide, construction prices increased just 0.3% for nonresidential materials in May, cost increases have been more pronounced in the three-state region, says Anirban Basu, chief economist of the Associated Builders and Contractors Inc.

“Prior to (Sandy), New York and New Jersey were associated with two of the nation's most slowly recovering construction markets,” Basu says.

“Today, New York and New Jersey are associated with two of the more rapidly growing construction markets, in terms of construction values and construction employment," he adds. "Hurricane Sandy rebuilding has put a surprising amount of pressure on the construction workforce, and has significantly raised demand for materials, many of which have to be transported long distances.”

Locally, the Quakertown Community School District recently suffered the effects of the rise in construction costs, according to The Inquirer. The district originally thought its high school renovation project would cost in the $60-million range to complete, but bids came in higher than expected and the project is now underway at a cost of approximately $71 million. See story at phillyburbs.com.