Churches Remain An Active Commercial Construction Market

Conroe, TX, August 27, 2025-"Church attendance has been declining for decades. But in a new kind of religious mystery, construction on churches and other houses of worship is booming,” reports the Wall Street Journal.

“In fast-growing Conroe, Texas, Pastor Josh Gosney and his wife built their Wake Church in a closed Kroger supermarket while renting space out for two connected businesses: a coffee shop and Oh Toodles, a children’s play place. The new church building opened last year.

“Gosney said the business trifecta helps cover the $6.5 million purchase and renovation costs while attracting new members. ‘What if the building was created for the community to be a part of it during the week?’ the 35year-old pastor said. ‘That was the conviction from not only a discipleship standpoint, but from a monetary and stewardship standpoint.’

“Construction of new religious buildings is on the rise, even as many churches in the U.S. close their doors each year. Church-building waned for two decades starting in the early 2000s, reflecting a decline in Americans’ religious participation, changing donation habits and a shift away from the construction of megachurches.

“More recently, federal data show that religious construction spending rose nearly 17% in the 12 months running through June. Overall construction spending fell nearly 3% in the same period, weighed down by high interest rates and soaring costs for materials and labor.

“Spending has been particularly strong over the past year on auxiliary religious buildings such as fellowship halls, camps and Sunday schools, data show, as churches broaden their appeal.

“Three decades ago, more than twice as many Americans were members of churches or synagogues as those who weren’t, according to Gallup polling. That trend flipped for the first time in 2020 and now churchgoers are in the minority. Religious construction spending bottomed out in late 2021 as the pandemic accelerated the drop in in-person church attendance.

“Now, young generations are turning to religion in greater numbers-despite broad declines in church attendance. A study by Barna Group this year found an increasing share of Gen Z and millennials, particularly men, identify as followers of Jesus.

“Churches are embracing less overtly religious weekday offerings-coffee shops are popular, as is child care-to raise revenue, cover bills and attract new members.

“‘You have churches with time and some capacity to reflect during Covid and the years following about ‘How do we re-create some of that third space, how do we meet some real needs in our community again?’’ said Frank Bealer, chief executive of Generis, a consulting company that works with churches.

“While spending on religious construction slipped in the most recent quarter, it is expected to reach $4.6 billion this year, up about 10% from last year, according to FMI Consulting, a consulting firm for the construction industry. That represents a 50% increase from the 2021 trough, but is --well below the $8.8 billion that went into religious construction during its peak in 2001.

“The increase is a rebound rather than a revival, said FMI partner Jay Bowman. Much of the growth in religious construction is centered on multipurpose space for churches to address needs related to youth and child care, he said. An estimated 15% of working parents use faith-based child-care centers, according to the Bipartisan Policy Center. ‘It’s not just about a Sunday or a Sabbath day, it’s becoming this sort of weeklong communal community center,’ he said.”