When Episcopal Churches Die, Build Houses

Pennsylvania Bishop Daniel Gutiérrez

COMMENTARY

By David W. Virtue, DD

www.virtueonline.org

April 4, 2026

By any measure, the Episcopal Church is slowly but surely dying — emptying parishes, merging dioceses, aging congregations, and slowly filling columbaria.

It has been a long time coming. Across the country, especially in the Midwest, churches are rapidly going out of business. Put simply: no Gospel, no Great Commission — just the great omission, with plenty of talk about racism, reparations, and forgettable sermons. The inevitable result is decline and death.

Now it has hit the Diocese of Pennsylvania with a vengeance.

An Episcopal News Service report this week revealed that 26 church properties — out of a total of 136 — are out of business and will be sold off for housing developments, the latest rebranded mission of the church. That is nearly 20 percent of the diocese, and the pain is not over.

In practical terms, the diocese has determined that 2.5 million square feet of its church properties are underutilized. Many of these buildings are more than 100 years old and carry high maintenance costs.

The official language reads like a real estate developer's sales pitch. The diocese calls it a "Transformative Initiative" — which is a bit like the Titanic sinking and someone spinning it as a transformative moment for deep-sea marine life. Here is the official statement:

"For years under Bishop Daniel Gutiérrez's leadership, the diocese has sought ways to reimagine and revive that space for new cost-effective uses. It is now acting on a plan, dubbed the Transformation Initiative, that could add more than 1,000 housing units to church properties through a new partnership with the Michaels Organization, one of the United States' largest developers of multifamily housing."

Separately, the diocese sold its Wapiti retreat center in Maryland in 2021 for $4 million — seed money now earmarked for the Transformation Initiative — after determining it was no longer financially or spiritually viable due to declining participation. Those of us who remember the long arguments over the retreat center's fate during the tenure of disgraced bishop Charles Bennison will find the déjà vu uncomfortable.

This is death by a thousand cuts. The Episcopal Church has long specialized in finding high-sounding language to dress up the obvious.

According to the ENS report, more rounds of cuts are coming — all in the name of "housing mission," TEC's newest holy endeavor. Within five years the diocese could be half its present size.

It's Not Just Pennsylvania

Other dioceses face similar trajectories over the coming decade. The Diocese of Missouri has been working with its congregations on deferred maintenance after commissioning professional inspections of each church building. The Diocese of Los Angeles has set a goal of creating affordable housing on at least 25 percent of its properties across southern and central California.

Under the Pennsylvania plan, the diocese will partner with the Michaels Organization to build housing units on church-owned land. The properties remain owned by the diocese; rental revenues will be reinvested in congregations and their ministries. Developments are expected to range from 30 to 150 units per site, with a mix of workforce housing, affordable housing, market-rate units, and housing for those 55 and older.

Crucially, the initiative does not require demolishing active worship spaces. Redevelopment will focus on underutilized land such as parking lots and vacant rectories. Construction is expected to begin by late 2026.

Albert Dandridge III, who chairs the Transformation Initiative, framed it plainly: "We're hoping to be able to generate revenues from underutilized properties, for the benefit of the diocese and the benefit of those churches."

Bishop Gutiérrez offered a more theological framing: "Liberated by the anxiety of structures, we can go out and serve the poor, reflecting the hope and love of our Savior. All things are being made new, and in the process, we are building a community and preparing for the next 250 years."

250 YEARS! the irony should not be missed: a church that has steadily emptied its pews while embracing pansexuality, is now hoping real estate revenue will fund the ministry it could not sustain through evangelism.

END