In a new church build, the land and building account for just 70-75% of the total expenses of a new church location (Space Designs).

In addition to the land and building itself, the professional service fees, furniture, and fixtures quickly accumulate.

Let's break down the costs of building a church and maintaining it in the thick of ministry.

Land Acquisition and Construction Costs

“Behold, I have set the land before you: go in and possess the land,” (Deuteronomy 1:8). 

One of the biggest questions pastors and church leaders ask is:

According to bigrentz, the average commercial construction cost in the United States is around $490 per square foot — but that price can range from as little as $70 to over $1,000 depending on building size and location.

The land purchase cost can vary widely based on the site location, characteristics, and size. The only initial answer contractors can give is at best an estimate until the logistics of the land are determined.

Factors That Affect Building Costs

Multiple factors can affect the average church building in commercial construction:

Size

You’ll want to consider the size of your new location as it needs to be appropriate for the size of your congregation.

If it's too big, the costs of maintenance could outweigh the potential positives. If it’s too small, it could affect attendance and the overall flow of your services.

You’ll also want to take into account the different ministries your church promotes as well: for example, classrooms for your Children’s ministry and other Sunday school classes.

Location

Once you've determined the size of land your church needs, begin looking in your area. You’re trying to find all those “For Sale” signs!

Once you find a piece of land, you’ll want to contact your local zoning officials. Zoning regulations can make or break in choosing where to buy. Zoning laws vary based on location, but can severely restrict the type of property you can build, or even make it difficult to open a church in that area.

Be prepared it may be the perfect location with loads of potential, but you still may need to update the condition of the property to comply with current safety codes.

Site Development Issues to be Aware

• Extreme Slope: The site may need to be leveled for construction to proceed.  This can take weeks, sometimes months
• Soil Conditions: The capacity of the soil to function, whether it be due to a high content of clay, or rocky conditions, will need to be addressed before construction can begin
• Fire Sprinkler Systems: Church facilities require a fire sprinkler system with an up-to-par pressure and flow rate. Some rural churches may need to provide fire water supply storage and a pumping system on-site
• Municipal Infrastructure: This could include items such as roadway, sewer, or water line extensions

These are just a few on-site development issues to be aware of. You’ll want to contact your local zoning office for further possible issues and guidelines to help you prepare the land.

Building Permits

The cost of a building permit can range from $30 to $500 for smaller projects, such as plumbing and electrical work. Bigger projects, such as construction, building, or remodeling will require permits with a higher fee, ranging from $600 to $3,000 and more (Get A Site Plan). Permit sets include many construction documents such as a site plan, foundation plan, exterior elevation drawings, and floor plans.

Once you submit these documents it’s a waiting game while your local jurisdiction finishes their part of the process and issues the permit. The larger the city, the more complex this process will be. The smaller the town the more quickly this will likely unfold.

Labor Costs

These costs include the wages, taxes, benefits, and training of architects and other skilled workers. The project timelines and cost of living in the area can also impact labor costs.

HVAC and Electrical Systems

Don't forget about the basic amenities! A building's HVAC, plumbing, and electrical systems make up a large portion of the overall costs of construction. The costs are determined by all materials used, labor costs, and other soft costs associated with installation and maintenance.

Utility Installation

Contractors also have to account for interior and exterior finishes, this includes lighting fixtures, flooring, and appliances.

Furnishings and Decorations

Furnishings such as pews, chairs, the pulpit, etc., can quickly raise a project budget (this doesn’t even include all the decorative pieces).

Costs to Build a Church

There are a lot of moving parts when it comes to church construction and the costs to build a church. New construction projects can have many unforeseen financial implications when you consider project costs, materials, labor, church needs, and many other factors.

But the cost to build is only the beginning. After construction is completed, operation and maintenance costs quickly pile up.

What Costs More: Building or Operating a Church?

This case study by Visioneering Studios shows that owning a church facility is significantly more expensive than the initial construction costs. While building a 30,000-square-foot church might cost around $4,012,500 including design fees, the total cost of ownership over a 40-year lifespan can soar to $17,592,500. This figure includes $1.1 million in interest from a loan, but the majority—$12,480,000—is attributed to ongoing operational costs and capital reserves, which far exceed the initial construction expenses.

These operational costs, compounded by inflation, constitute 71% of the total ownership costs, emphasizing the importance of planning for long-term maintenance and operations rather than focusing solely on the initial build.

Factors That Affect Operational Costs

Multiple factors affect the average church's operational costs:

Outreach/Ministry Related Costs

Your outreach team and other ministry groups will likely accumulate costs as VBS, youth camps, festivals, and all other events are in full swing. These are a great avenue to accept donations and host fundraising events so your church doesn't have to cover all the costs.

Staffing Costs

These are not just your pastors or administrative leaders, but maintenance, security, landscapers, and other general operations. For smaller churches, a smaller staff may be necessary. To do this, announce a call for volunteers in your congregation to help in seasonal or part-time roles.

Utility Bills

HVAC: Good insulation and an HVAC control system will save you on costs in the long run. This makes up 50-75% of your utility bill.

Electricity: Electricity follows closely behind HVAC. Consider ways to save lighting costs like installing motion sensors on the lights and fans in the restrooms and using LED lights (unseminary).

Insurance

Stay informed about church property taxes and liability insurance policies. It's important to know which tax laws churches are exempt from and those that they share the same obligations as secular organizations. Failure to evaluate and understand these laws not only has legal consequences but can also damage our church's reputation and credibility in your new community.

Factors That Affect Maintenance Costs

The costs of church building operations and maintenance typically include repairs, cleaning, pest control, landscaping, trash disposal, etc...

Repairs

Maintaining the exterior and interior of your church property is crucial in creating a welcoming environment for attendees. These are just a few things you should have regularly inspected for the sake of your building's integrity and longevity (Church Property Insurance):

• Roof repairs
• HVAC system maintenance
• Electrical system inspection
• Plumbing inspection
• Foundation support
• Fire prevention measures: extinguishers, smoke alarms, and electrical outlets
• Windows
• Potholes in the parking lot and uneven walking paths

Cleaning

Cleaning includes much more than the general quick sweep of the sanctuary after service ends. This includes the sanctuary, restrooms, common areas, offices, and nursery/classrooms. Developing a cleaning checklist, with weekly and monthly tasks would help greatly.

Weekly tasks such as vacuuming, cleaning bathrooms, and dusting common areas should be good for keeping a nice appearance for any guests visiting your church.

Every month, include deep cleanings of the offices, nursery/classrooms, and regular inspections of the building.

Pest Control, Landscaping, and Trash Disposal

These tasks tend to fall behind the scenes but are just as important as regular cleaning and repairs. You’ll most likely hire contractors for these jobs unless you’re blessed with a member of the body in any one of these occupations.

According to Architectural Digest, you should expect to pay between $400-$950 per year for general, full-service pest control— this will vary based on your property's square footage. Most landscaping is calculated based on a church’s acreage or a landscaper's rate per hour.

Trash disposal is probably not something you think about every day, but effective waste management for churches is essential. Most churches purchase a dumpster for the property to dispose of waste weekly.

Costs to Operate a Church

It could be said that the costs to operate and maintain a church could accumulate to more than the initial construction fees altogether. So remember, when you decide to build a church, you're in it for the long haul. Don't worry though, there are ways to help you manage your church finances and relieve some of the financial weight of the costs.

Funding and Financial Management

With these costs accumulating, your church will surely need funding support. Organize regular fundraising events and encourage donations specifically for building construction and future maintenance.

Fundraising

Online fundraising is a must for churches these days. Fundraising events are a great way to get the word out to your community. You can raise money at events by selling tickets, merchandise, auctions, and food vendors.

Check out our article, "12 Church Fundraising Ideas that Actually Work" for more fundraising inspiration!

Grants and Loans

Churches get a loan the same way as organizations and small businesses— lenders are simply looking to see if the church can repay the loan. There are several types of loans, whether for purchasing property, building construction, renovations, or other specific needs.

These are just a few examples of the several types of church loans you can apply for:

• Mortgage loans
• Construction loans
• Nonprofit business loans

Foundations prefer to give to churches with a 501(c)(3) status but vary in their giving interests. Even those who give to churches or nonprofits differ in the types of projects they will or will not support (Nav).

Check out our article, “Benefits and Disadvantages of 501(c)(3) Status for Churches” to learn about more of the benefits!

Budgeting Tips for Church Ownership

1. Create an Initial Church Building Budget: Include construction, design fees, and any borrowed funds with interest
2. Create an Ongoing Church Ownership Budget: Cover utilities, janitorial services, maintenance, and unexpected repairs
3. Strategic Planning: Include long-term financial goals in your strategic planning such as future expansions, renovations, or upgrades
4. Educate Congregation: Inform the congregation about the costs associated with church ownership and financial stewardship 
5. Professional Advice: Seek advice from consulting services or advisors specialized in non-profit or churches
6. Other Pastors: Ask ministry friends and local pastors about their experience

Check out our article, “How to Create a Church Budget: The Complete Guide” for more budgeting tips!

Building a Church One Square Foot at a Time

I wanted to leave you with a word of encouragement: In this passage, Haggai encourages Israel to focus on eternal treasures, rather than collect earthly riches. He tells them to go up to the mountain (start looking for land), bring wood (gather the materials, resources, and people), and build the house of the Lord (start construction and design).

Whether you're preparing to build a new church facility or moving into an existing church property, remember that every step you take is not just about constructing a physical space, but about creating a place where God’s work is finished and He is glorified.