Church Construction

As of June 2021, construction spending in the U.S. stood at a near-record of $1.55 trillion. However, one segment – church construction – has fallen over the last two decades. It should be noted however that like the decline of brick-and-mortar retail stores, this doesn’t mean that participating in a church is not as important anymore, but rather that the way people are worshipping is evolving.

Here are the latest statistics, as reported by Axios:

By the numbers: Construction spending on religious facilities touched a record low annualized rate of $3 billion in June. This is a 66% decline from its $8.8 billion record high in August 2003, according to U.S. Census data.

Details: Religious facilities surveyed included all houses of worship: churches, mosques, synagogues, and temples. (They do not include certain buildings owned by religious organizations like college facilities and hospitals.)

Between the lines: Last year, according to Gallup, just 47% of U.S. adults said they were a member of a church, synagogue or mosque in 2020. This was the first time ever this group wasn’t the majority.

Many religious scholars and lay people responsible for church construction are the first to point out that the decline in church construction doesn’t provide a complete picture. Church-goers are using other methods to engage, such as Zoom calls and online portals. They’re also meeting in schools and warehouses.

Looking ahead, we are also seeing new types of amenities and gathering areas (like coffee shops) being added to the traditional church blueprint. Many churches are using both the interior and the exterior of their church structure to create a greater sense of community. Bright entry spaces – including a large lobby, café, bookstore, and activity center – help non-churchgoers and lapsed ones feel comfortable stepping inside. The overall design objective is to create a place of worship that’s familiar, creative, and inviting in order to attract modern faith seekers.

At 7th Dimension 21, our own faith has led us to include church construction as one of the eight specialized areas we focus on within our commercial lending business. We’re excited to speak with you about the possibility of funding your upcoming church construction or renovation project. Call us today for a chat.

Learn more about our loan process here.