U.S. Religious Construction Jumps 17% in 2025 as Churches Pivot to Housing and Community Services
Updated
Updated · The Washington Post · Jun 11
U.S. Religious Construction Jumps 17% in 2025 as Churches Pivot to Housing and Community Services
2 articles · Updated · The Washington Post · Jun 11
Summary
Religious construction spending rose 17% in 2025, the fastest gain among private nonresidential categories, even as offices, hospitals, factories and retail building were flat or declining.
Post-pandemic reassessments helped drive the surge as congregations revived delayed projects, tackled deferred maintenance and repurposed underused property for affordable housing, senior living and smaller satellite campuses.
New state laws also widened the pipeline: Virginia passed its Faith in Housing Act in April after similar moves in California and Florida, while a Rutgers report counted 200 religious housing projects producing nearly 10,000 affordable units from 2015 to 2025.
Central United Methodist in Arlington illustrates the shift with an $84.8 million redevelopment that added an eight-story affordable housing tower above a sanctuary and community-service space after a decade of planning.
The boom reflects a broader institutional reset as weekly attendance has fallen below one-third of adults, pushing faith groups to use real estate to meet housing, aging and civic needs.
With faith attendance falling, why is religious construction booming across America?
Are America's churches transforming into the next major affordable housing developers?
Why are young American men suddenly embracing religion at record rates?
Faith-Based Construction Surges 8.3%: How U.S. Religious Institutions Are Leading the Affordable Housing Movement (2025-2026)
Overview
In 2025 and early 2026, religious construction in the U.S. stood out with a strong surge, even as overall construction spending declined and other nonresidential sectors faced downturns. While total construction and private nonresidential building dropped, religious construction grew by 8.3% year-over-year in January 2026. This growth is driven by religious organizations repurposing their properties to address community needs, such as affordable housing, marking a shift from traditional worship spaces. Despite challenges like a federal government shutdown delaying data, the resilience and evolving role of faith-based construction signal a new chapter for religious institutions.