2023 Church Design Forecast : Trendspotting
Church construction financing trends :
A lending veteran ’ s perspective
WatersEdge began lending to churches in 1953 and has since partnered with more than 1,600 congregations looking to grow or refinance . During that nearly 70-year span , we ’ ve seen it all : boom years , recessions , and everything in between .
Instead , most congregations are prioritizing worship space over any other area , with an emphasis on using that worship space to host events throughout the week to maximize usefulness .
It ’ s not always about growth I recently worked with a large church in Georgia that ’ s in the process of downsizing . The congregation realized that they could accomplish the same thing in a 100,000-square-foot building that they ’ re currently doing in their existing 160,000-square-foot facility . So , the church got a loan from WatersEdge to buy land to construct a smaller , custom space . Another church , in Kansas , is downsizing even more aggressively , from 90,000 square feet to 16,000 square feet . I ’ m also working with another congregation that is re-envisioning its sanctuary construction project as a multipurpose space , better suited for the broad spectrum of the church ’ s needs . It can seem counterintuitive to think smaller , but sometimes downsizing is the right choice — especially in a highbuilding cost , high-interest rate environment .
So , as churches ride the waves of yet another tumultuous period in our nation ’ s economy , let me offer you some encouragement : God ’ s Kingdom isn ’ t dependent on the market . Our Savior hasn ’ t stopped moving !
Churches ’ need to expand hasn ’ t stopped , either .
Thankfully , congregations of all sizes have a myriad of options when considering how to accommodate growth . Here are some of the trends I ’ m seeing in today ’ s church construction environment , plus some tips to help you and your team secure financing and plan effectively for your next project .
There ’ s value in variety From my perspective at WatersEdge , it ’ s difficult to nail down any concrete church construction trends , but there are plenty of commonalities to explore . It ’ s likely no surprise that we continue to see many traditional projects — new sanctuaries and other church buildings needed to accommodate growth . But we also see proposals outside the norm , like adaptive reuse projects or other creative renovations . While I don ’ t think there ’ s any specific type of building being built , what ’ s most important is ensuring that your church ’ s plan lines up with your ministry goals and is financially realistic .
Location , location , location According to recent research , more congregations are moving out of the suburbs and into the cities to reach denser population centers . In my experience , that can sometimes be true , especially for younger churches or pastors who feel a burden for the inner city . But it ’ s not always the case . I still see plenty of congregations that opt for larger campuses in more open , suburban or even rural areas . So , if that ’ s where God is leading you and your church , financing shouldn ’ t be an obstacle .
The trends of the past are staying put Remember the building bonanza of family life centers , athletic complexes , and education spaces ? These were trendy projects in the 1990s and early 2000s , but I ’ m not seeing nearly as many today , if any .
Think beyond new construction Brand-new buildings aren ’ t the only game in town . I ’ ve seen many churches get creative in their expansion plans , including one that renovated a neighborhood grocery store into its primary facility . While this kind of project might seem quirky , it can make a lot of sense for churches looking to save money and create a unique and exciting experience . Securing a loan for one of these adaptive reuse projects is essentially the same as securing one for new construction . Just be open with your lender to ensure that financing lines up with your new plan — and make sure that all of the property you purchase is zoned for church use .
One last tip … This might seem obvious , but it ’ s not something that everyone considers : whether using a ministry-based lender or a traditional lender — like a bank or credit union — it ’ s important for your building committee to consult the team handling your loan early in the process . I ’ ve seen church leaders go through the entire planning stage only to discover that they didn ’ t qualify for a big enough loan for the building they had in mind and were forced to go back to the drawing board . Your lender can tell you whether your church ’ s proposal is feasible for the projected price tag . By coming together early , you ’ ll save time .
Jerry Vaughan brings more than 40 years of lending experience in both the commercial and non-profit sectors to WatersEdge . [
www . watersedgeservices . org ] Since joining WatersEdge in 2000 , he has assisted hundreds of churches with more than $ 460 million in loans . churchexecutive . com CHURCH EXECUTIVE 7