2026 Church Real Estate Outlook

A Practical Guide for Church Leaders Navigating Facility Decisions

Chief Financial Officer, The Church of Eleven22®

“But all things should be done decently and in order.”
— 1 Corinthians 14:40

“For which of you, desiring to build a tower, does not first sit down and count the cost…”
— Luke 14:28

“For God gave us a spirit not of fear but of power and love and self-control.”
— 2 Timothy 1:7

The Good News and the Hard Truth

For many churches, this is the best season in a generation. Attendance is climbing. Giving has never been stronger. New faces show up every weekend. Non-denominational churches alone have added more than 6.5 million people in the past decade. The mission is working.

And with growth comes the inevitable question: Do we need more space? Should we expand or add a campus? How do we maximize renovations? What technology upgrades are needed?

Here is the hard truth. Building a church facility often means pushing all your financial chips to the center of the table. Construction costs have nearly doubled since 2019. Skilled labor is scarce. Land that was available five years ago has been scooped up by developers of retail, data centers, industrial warehouses and housing projects. A facility decision that goes wrong does not just cost money; it can stall your ministry’s growth for years.

It has never been riskier. And yet churches are still building. Religious construction spending rose 17 percent last year to $4.6 billion, even as broader construction slowed. The churches doing this well are the ones that planned carefully and knew what they were getting into.

There is another hard truth most church leaders do not want to hear: you probably cannot do this alone. Construction projects routinely run over budget and over schedule. That is not pessimism; it is the exposed reality of nearly every project. The real question is whether you have the systems and expertise to manage the overruns—or whether they manage you.

I have watched this shift firsthand. Over the past decade at The Church of Eleven22, we have built and now operate over 500,000 square feet of ministry space across 14 campuses. We have made mistakes. We have learned hard lessons. Through these experiences, we have trained a full-time staff of nine professionals and developed systems that work.

My hope is that this outlook helps you frame the decision ahead—not to scare you away from building, but to help you build wisely.

Pastor Joby Martin has led The Church of Eleven22 through 14 campus builds since 2012. His approach to navigating uncertainty:

“We are mission driven. We focus on clarity and vision so our church can stay focused and faithful. Finances determine timing, not just yes or no. It is a dynamic process. We pray, guess and go—but we go with bold vision and the right leaders.”

— Pastor Joby Martin, Founder and Lead Pastor, The Church of Eleven22

Positive Trends for 2026

Despite the challenges, several encouraging trends are creating opportunities for churches ready to act.

Growth in Non-Denominational Churches

• More than 4,000 new non-denominational churches opened in the past decade, with approximately 6.5 million more people now attending compared to 2010 (U.S. Religion Census data)
• Non-denominational Protestants now make up a significant share of U.S. Christians. If grouped as a denomination, they would rank among the largest.
• In urban areas, non-denominational attendance is growing steadily
• Sun Belt cities have seen a significant influx of families, many seeking gospel-centered churches

Financial and Operational Strengths

• Congregational giving has increased significantly for many gospel-centered churches, creating opportunities for campus restructuring and expansion
• Younger generations are more engaged than ever, bringing energy, technology skills and a strong serving culture that strengthen ministries
• Many established churches are transitioning leadership and generations, creating a  significant supply of church buildings available for renovation and modernization

Technology and Reach

• Congregations now regularly combine in-person and online attendance, expanding reach and engagement
• Churches utilizing hybrid or livestream services can maximize smaller spaces and reduce construction costs while still reaching broader audiences

Financing Availability

• Select but adequate debt financing remains available for projects with strong leadership, sound governance and disciplined financial stewardship

Biggest Challenges in 2026

Understanding these challenges is essential for making wise decisions:

1. Rising Construction Costs

Materials and labor are historically expensive, often straining budgets. Skilled construction labor is increasingly difficult to find, leading to delays and higher costs.

Let me be direct: construction projects almost always run over budget and behind schedule. Ask anyone who has built a home—everyone in the industry knows this. The difference between a successful project and a failed one is not whether overruns happen; it is whether you have the expertise and systems to anticipate them, manage them and keep them from derailing your ministry.

“Church redevelopment is rarely simple. Without structured oversight, costs and schedules routinely slip. Breaking projects into phases and reviewing milestones helps churches stay on track and control costs.”

— Josh Dixon, Executive Vice President, Scherer Construction

Many church leaders believe they can manage a construction project themselves. They hesitate to tell their boards they need outside help, worrying about optics or the cost of professional oversight. So they attempt to manage projects internally.

This is where projects go sideways. Church staffs rarely have full-time, in-house personnel experienced in the detailed aspects of construction, budgeting, permitting and project management. The learning curve is steep—and expensive. Small oversights become costly delays. A missed permit requirement pushes the timeline back months. An unexpected contractor change order blows the budget. Suddenly, leaders are standing in front of their board explaining why the project is 20 percent over budget and six months behind schedule.

“Church real estate decisions today require far more clarity, discipline and expertise than most pastors or boards realize at the outset. Blueprint1122 brings something rare to this space—real-world experience, proven systems and a deep understanding of how facility decisions impact ministry momentum. Their approach helps churches move forward with confidence, wisdom and faithful stewardship.”

— Pastor Eric Smith, Founder and Lead Pastor, Hope City Church

2. Land and Lease Costs

Acquiring new land for expansion or new construction is increasingly competitive and expensive. Retail, data centers, industrial and housing developers have acquired many of the most desirable locations, making thoughtful financial planning essential. Whenever possible, churches should consider partnering with developers.

3. Limited Available Space

Retail occupancies are at all-time highs, and properties suitable for churches are scarce. Many  churches that are thriving have already renovated their existing facilities, making further expansion or repurposing difficult.

4. Underused or Constrained Space

Many churches have sanctuaries or classrooms that are underused or physically constrained, limiting ministry growth and flexibility.

5. Technology Integration

Design and technology requirements change rapidly and require expertise to integrate physical space needs with audio, visual and production systems. With the operation of 14 campuses, we track and evaluate emerging technology options daily.

6. Governance and Oversight Expectations

Lenders and boards increasingly expect clear planning, transparency and strong leadership throughout the construction process.

“We are financing more construction and redevelopment projects than ever. Churches that demonstrate financial and project planning and oversight are less risky and more successful. Clear governance, disciplined project management and budgets are key.”

— Darren Key, CEO, Christian Financial Resources

7. Financial Risk of Poor Planning

Without careful analysis, churches risk overspending, mismanaging resources or creating underused spaces. These risks compound when churches attempt to manage complex projects without the appropriate expertise.

I have seen churches lose hundreds of thousands of dollars on avoidable mistakes: unanticipated change orders, overlooked permitting requirements and contractor disputes they were unprepared to navigate. In every case, the cost of professional guidance would have been only a fraction of what was lost by trying to do it alone.

8. Transitioning Older Churches

Older churches often carry have significant deferred maintenance that requires substantial investment. In addition, design expectations have changed due to evolving ministry needs and modern technology requirements.

Key Strategies for Success

These strategies help minimize risk and maximize ministry impact.

Vision and Planning

• Start with vision: Align property and construction decisions with long-term ministry goals and mission
• Detailed financial analysis: Ensure you are working from current cost estimates that reflect design requirements. Run multiple scenarios to align fundraising with project timing
• Financial planning: Set aside 10–15 percent of the annual budget for facilities. Model multiple scenarios to account for material and labor cost fluctuations

Property Evaluation

• Evaluate underused property: Many sanctuaries sit largely empty during the week. Classrooms are underused, while land remains costly to maintain.
• Consider consolidation or campus moves: In most cities, numerous church buildings are underutilized, with older leadership in transition years or struggling financially
• Repurpose spaces for ministry: Thinking through every square inch of space is now essential, including childcare, classrooms, and community use

Professional Oversight

This is the section most church leaders skip—and it is also the section that determines whether a project succeeds or fails.

• Engage professional oversight early: Inexperienced or volunteer-only project management increases risk, drives up costs and creates inconsistency. The cost of professional oversight is a fraction of the overruns typically incurred without it. Large, proven multinational organizations routinely engage outside experts for this reason.
• Mitigate risk at every stage: Churches attempting complex projects without expert guidance frequently encounter delays, cost overruns or compliance issues
• Be honest with your board: It can feel like good stewardship to assure your board that a project can be managed internally. The real stewardship question, however, is this: What happens if the project goes sideways?

A failed construction project does not just cost money. It can stall ministry momentum for years. It can erode congregational trust, create tension at the board level and distract pastoral leadership from ministry. Recovery can take far longer than most leaders anticipate.

The churches that build successfully are not the ones with the largest budgets. They are the ones humble enough to recognize what they do not know and disciplined enough to bring the right expertise to the table before problems arise.

How We Approach It at Blueprint1122

We evaluate every property decision through a disciplined process. We maintain a database of recent construction costs across our campuses, allowing us to forecast accurately. We run multiple financial scenarios before committing to a project, and we conduct regular financial reviews and scenario planning to give our board confidence—even in seasons of uncertainty.

As a result, we have passed on more projects than we have completed.

We currently manage more than $150 million in active development projects, making us one of the largest developers of church facilities in the United States.

Building Considerations

According to The Wall Street Journal, spending on religious construction rose approximately 17 percent in 2025 to $4.6 billion, even as overall construction activity slowed. Churches that plan carefully are finding meaningful opportunities to renovate, expand and consolidate with measurable ministry impact. We expect this trend to continue into 2026.

Construction Cost Comparison

Building church facilities has never been more expensive. Based on our database, we recommend planning within the following ranges:

Project Timeline and Key Milestones

Projects are taking longer than in previous years. Permitting timelines have increased and competition for labor and materials remains high.

Key Takeaways

As you consider your church’s real estate decisions in 2026, keep these points in mind:

1. Opportunities exist, but with rising costs and growing ministry demands, the margin for error has narrowed significantly.
2. Maintaining clarity of mission and vision helps congregations navigate uncertainty confidence.
3. Strong mission alignment and congregational buy-in improve project execution and long-term ministry impact.
4. Church construction activity remains strong, even as broader construction slows.
5. Clear vision casting, order, planning and wise counsel are essential to protect pastors, boards and the mission.
6. Increasing attendance, emerging technologies and strong engagement from younger generations create new opportunities for growth and innovative ministry.
7. Rising land costs, limited retail commercial space and renovation saturation add constraints, making strategic planning more critical than ever.
8. Following a clear timeline—with defined planning, design and cost-confirmation milestones—minimizes risk and supports smoother project execution.
9. Thoughtful property decisions strengthen long-term ministry impact and faithful stewardship.
10. Churches with limited building experience should engage owner’s representation to help manage the complexity of the process.

Why We Started Blueprint1122

Over the course of 14 campus builds, we made mistakes and learned hard lessons. Through that process, we have hired and trained a dedicated full-time team, developed proven systems, built strong vendor relationships and established processes that work. As a result, other church leaders began asking how we did it—and how they could avoid the same pitfalls.

More importantly, we watched other churches struggle with challenges we had already faced and solved. We saw leaders attempting to manage complex projects alone. We saw budgets balloon and timelines slip because no one on staff had navigated this process before. We saw the toll it took on pastors, boards and ministries.

Blueprint1122 exists to share what we have learned. We are not a general contractor or architecture firm. We are church operators who have walked this road and want to help other ministries avoid costly mistakes and steward their resources wisely.

We can support churches at every phase of a facility project—from strategic planning, site evaluation, and acquisition to design, financing, architect and contractor selection to owner’s representation.

The investment in securing the right expertise at the outset is always far less than the cost of fixing problems after construction begins. We have learned this the hard way—so you do not have to.

If you are considering a facility project and would like to talk through your options, we would welcome that conversation.

Please contact:

Paul Williams — CFO, The Church of Eleven22 and Founder of Blueprint1122 
[email protected]

Pastor Shawn Maxwell — COO, The Church of Eleven22
[email protected]

Benjamin Annis — General Manager, Blueprint1122
[email protected]

May your facility decisions honor God and advance His kingdom.

About the Author