As the United States continues to struggle to find solutions for affordable housing, more religious institutions all over the country are looking at selling church-owned land for the development of affordable housing. As church attendance declines and maintenance costs rise, some congregations are finding that repurposing or selling land can offer a financial benefit while also expanding their social mission.

While it’s estimated there’s a shortage of over 4.5 million homes in the country, many states are adopting a YIGBY (Yes In God’s Backyard) approach by reforming laws and removing restrictive zoning laws that prohibit religious property from being put to any other use.

To transform properties into affordable housing, churches typically donate, lease or sell land (often at a discount) to nonprofit developers with experience building affordable apartments or homes. Those developers tap into some combination of donations, private financing and federal, state or local dollars to build and operate the housing. Developments sometimes include a new worship space for the church, though developers can’t use government housing dollars to build those spaces.

To help religious groups pursue housing projects, local and state lawmakers from California to Virginia have pursued legislation that fast-tracks projects on church-owned property. In 2021, the Biden administration created a Center for Faith-Based and Neighborhood Partnerships within the Department of Housing and Urban Development (HUD).

In 2019, Washington state passed a law incentivizing affordable housing development on property owned or controlled by religious groups, and local governments in Atlanta and San Antonio have started offering technical assistance to religious institutions interested in developing housing on their land. In Detroit, the city’s housing commission recently funded new affordable units on church property, and lawmakers in states like Hawaii and New York say they hope to follow in California’s footsteps with a YIGBY law.

In October 2023, California lawmakers passed legislation permitting religious organizations to bypass local permitting processes and eased zoning restrictions for development on property owned by religious organizations, making it easier for churches to build affordable housing. About 28% of the U.S.’s unhoused population live in California.

At the federal level, former Sen. Sherrod Brown (D-Ohio) introduced the “Yes, in God’s Backyard Act” in March 2024. His “YIGBY” proposal would have provided technical assistance to faith organizations interested in building affordable housing.

Obstacles to Turning Churches Into Housing

What’s slowing the church-to-housing pipeline? Even God’s house has to abide by zoning laws. As more congregations study the idea of converting property, the unique challenges of such projects have become apparent, from lining up financing to overcoming the architectural incompatibility of the buildings themselves.

This landscape of faith is undergoing a dramatic transformation. In fact, it’s been estimated up to 100,000 houses of worship—a quarter of the estimated U.S. total—could shut over the coming decades.