So What Faith

Greg Smith

How Big is Too Big? Rethinking Church Real Estate (#2262)

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The biggest change in local churches in America during my lifetime is size. The average congregation has grown smaller and smaller. The average worship attendance continues to decline with the average dropping by more than 50% between 2000 and 2020 (see Worship Attendance Cut in Half, 2022). While much of the focus has been on the small and mid-sized congregations that make up the majority, it’s important to recognize that this trend is now beginning to affect larger churches too.

Screenshot of real estate listing for a church listed for sale in my hometown of Arlington, Texas
(available at https://www.loopnet.com/Listing/1919-S-Collins-St-Arlington-TX/36407461/)

A few weeks ago I came across a Baptist News Global article by Mark Wingfield that serves as a timely example. Dauphin Way Baptist Church in Mobile, Alabama was once the largest Baptist church in the state of Alabama. When the congregation moved to its current location in 1988 it boasted a membership of 8,000. Today, it has a membership of around 600 with a sanctuary designed for 3,000 and updated to seat 1,900. Recently, Dauphin Way has decided to list its current facilities for sale in order to relocate to a smaller campus. The 19.3 acre campus is listed for sale at $28,500,000.

So What?

Churches that have been around for decades or longer often find they have a facility that no longer fits. In most cases the mismatch is that the property is more than what the church needs for its current ministry (see In Person Worship: Worship Capacity in the UCC, 2020).

Over the years I have visited, consulted with, and served a number of congregations that had delayed making decisions about downsizing. The approaches to trying to manage the larger than needed campus varied significantly, but in all cases the amount of time and percentage of revenue dedicated to this task was increasing over time. And, in most cases the upkeep of the less used or used exclusively for rental components of the building had significant deferred maintenance.

I invite you to take a few minutes to think about your church and its current property.

  • How much of your annual operating budget (both in dollars and as a percentage) does it cost to operate and maintain the physical plant? How much has been spent in capital expenditures per year (consider adding up all costs for the last five years and dividing by five to answer this question)? Are these numbers in line with targets or not (or does your congregation lack clear targets or expectations for this expense)?
  • Is it what your congregation needs, more than is needed, much more than is needed, much less than is needed, or simply a little less than is needed?
  • If your congregation owns more square feet of usable space than your faith community really needs what is being done to ensure good stewardship and what metrics have been put in place that would trigger more serious discussion about the possibility of downsizing (as Dauphin Way has elected to do)?

For further discovery on this topic check out some of my related posts dating back as far as 2009: