Housing Squeeze: The Religious Land Shift Creating 800,000 Homes on Sa
Religious groups own 2.6 million underused acres that could support 800,000 new homes nationwide. Connecticut's YIGBY bill streamlines approvals, creating oppor
B&B
Brick & Bit
April 6th, 2026
9 min readRealtor.com News
Key Takeaways
"We are inspired by the possibility of being part of the solution, but we need legislative tools that translate our willingness into concrete housing," says Rev. O'Brien, whose group represents over 75 congregations across Connecticut.
Church parking lots, underused parish halls, and expansive religious campuses are becoming America's unexpected housing solution. The YIGBY ...
NIMBYism ("Not in My Backyard") has paralyzed housing development for generations, creating regulatory barriers that have exacerbated housin...
Church parking lots, underused parish halls, and expansive religious campuses are becoming America's unexpected housing solution. The YIGBY ("Yes in God's Backyard") movement is tapping into 2.6 million underused religious acres nationwide as Connecticut's median home price hits $499,700 and housing scarcity reaches crisis levels. What began as local pastoral responses to congregational needs is evolving into a legislative model with national implications, potentially reshaping how communities leverage existing assets for affordable housing.
The Big Picture
NIMBYism ("Not in My Backyard") has paralyzed housing development for generations, creating regulatory barriers that have exacerbated housing shortages from coastal California to New England. Now comes its theological counterpoint: YIGBY, or "Yes in God's Backyard." This emerging movement strategically repurposes underutilized religious land—from empty parking lots to aging parish buildings—for affordable housing, creating an unexpected alliance between spiritual institutions and real estate developers. The movement represents a unique convergence of social need, real estate opportunity, and community mission, where religious institutions are reimagining their role beyond spiritual guidance to address urgent material crises.
The national context is stark: according to the U.S. Department of Housing and Urban Development, America faces a shortage of approximately 3.8 million housing units. Meanwhile, religious organizations collectively own more than 2.6 million acres—equivalent to roughly 4,000 square miles or the combined size of Connecticut and Rhode Island. This paradox of housing scarcity alongside underutilized land has created perfect conditions for innovative solutions like YIGBY.
empty church parking lot with zoning map and housing density overlay
Connecticut provides the perfect test case for both the urgency and potential of this model. The state earned an F on Realtor.com's 2025 Housing Report Card, a damning assessment of how strong economic fundamentals (with median household income of $83,572) fail to overcome housing scarcity. With median listing prices at $499,700—nearly 6 times the median annual income—even solid earners get priced out of homeownership, a reality religious leaders witness firsthand in their congregations. Rev. Caitlin O'Brien of Congregations Organized for a New Connecticut explains: "We see weekly how families in our congregations face housing insecurity, paying over 50% of their income toward rent or considering moving to more affordable states. This erodes the community fabric our institutions have built over generations."
“"We are inspired by the possibility of being part of the solution, but we need legislative tools that translate our willingness into concrete housing," says Rev. O'Brien, whose group represents over 75 congregations across Connecticut.”
By the Numbers
By the Numbers
Religious land bank: Faith organizations collectively own more than 2.6 million acres across the U.S., according to the Lincoln Institute of Land Policy
Housing potential: That land could support as many as 800,000 new homes according to a 2025 Forbes report, assuming moderate density of 8 units per acre
Price pressure: Connecticut's median listing price has climbed to $499,700, a 42% increase since 2020
Affordability threshold: At least 30% of units in YIGBY developments must be designated affordable for households earning 80% or less of area median income
Decision timeline: Municipalities would have 90 days to decide on applications under House Bill 5396
National deficit: The U.S. needs approximately 3.8 million additional housing units to balance supply and demand
Typical approval time: Affordable housing projects traditionally face 18-36 months of approval processes in Connecticut
comparative chart showing religious land availability vs national housing deficit
Why It Matters
This isn't just about land use—it's about fundamentally reimagining community assets and institutional relevance in the 21st century. Religious institutions, traditionally focused on spiritual and charitable services, are becoming unexpected but crucial players in urban development by mobilizing their most valuable physical assets: their land holdings. Their geographic advantage is significant: these properties are often located in established neighborhoods with existing infrastructure (water, sewer, transportation), reducing development costs compared to peripheral greenfield sites. Moreover, their location in settled neighborhoods allows for creating affordable housing in areas with good access to jobs, schools, and services—exactly where it's most needed.
Connecticut's House Bill 5396 serves as the national test case with implications that could extend far beyond state borders. By establishing a "summary review" process that bypasses prolonged public hearings and multiple appeals, it creates predictable pathways for developers who have historically faced nearly insurmountable regulatory hurdles. This significantly reduces the regulatory risk that typically deters affordable housing construction, where tighter margins offer less cushion for delay costs. As Nick Kantor of Pro Homes Connecticut notes: "At the heart of this, you have organizations that want to do the right thing and build housing as part of their service to the community. But they often get stuck on the unpredictability of the process—hearings that drag on for months, neighbor appeals, regulatory changes mid-stream. The bill creates certainty, and certainty attracts capital."
The model also addresses critical demographic concerns: many religious congregations face declining membership and rising maintenance costs, making ownership of large properties unsustainable. YIGBY offers a viable financial solution where organizations can retain partial ownership (through long-term ground leases or condominium arrangements) while generating sustainable income streams—crucial for congregations with aging memberships and declining donations. Furthermore, it positions religious institutions as active solvers of community problems, potentially attracting younger members concerned with social justice and practical action.
The bill cleverly navigates local control concerns that have doomed previous housing reforms. Projects must still meet zoning requirements—they just avoid procedural delays that have become tools for obstruction. This preserves municipal authority while accelerating development, a compromise that could become a model for other housing-strapped states facing similar NIMBY dynamics.
What This Means For You
What This Means For You
For developers and builders, the YIGBY model offers access to previously untapped land inventory in prime locations. Religious properties often come without the acquisition complexities facing traditional developers—no multiple owners to negotiate with, fewer title issues, and frequently a shared motivation to see the project move forward quickly. More importantly, the accelerated approval process reduces carrying costs (interest on loans during waiting periods) and timeline uncertainty, significantly improving the financial viability of affordable projects where margins typically range from 8-12%, compared to 15-20% for market-rate housing.
For investors and housing funds, this movement creates new public-private partnership opportunities with attractive risk profiles. Religious organizations can contribute land as in-kind equity, reducing upfront cash requirements and improving returns on invested capital. This hybrid model—where community institutions contribute land and social credibility while developers bring expertise and financing—could scale nationally if Connecticut's legislation proves successful. Impact funds particularly might find in YIGBY an opportunity to align financial returns with measurable social metrics (affordable units created, households stabilized).
For municipal leaders and planners, YIGBY represents a middle path between NIMBY resistance and developer demands. The 90-day decision window forces action while maintaining local oversight—a practical compromise in markets where housing scarcity threatens economic growth and community stability. For cities facing teacher, firefighter, and service worker shortages because these essential employees can't afford local housing, YIGBY offers a mechanism to create workforce housing without contentious rezoning battles.
For religious leaders and congregational boards, YIGBY represents an opportunity to revitalize institutional missions while addressing tangible community needs. The model allows for retaining partial land ownership (through long-term leases or condominium arrangements) while generating sustainable income streams—crucial for congregations with aging memberships and declining donations. Additionally, it positions religious institutions as active solvers of community problems, potentially attracting younger members concerned with social justice and practical action.
1Scout religious properties strategically: Identify underused church, synagogue, and mosque lands in your market, prioritizing locations near public transit, schools, and employment centers where affordable housing need is most acute
2Monitor legislative spread: Connecticut's bill could inspire similar measures in California, New York, Massachusetts, Colorado, and Washington within the next 12-24 months as housing crises intensify
3Structure creative partnerships: Explore long-term ground lease arrangements (50-99 years), joint ventures with equity participation for religious institutions, or condominium models where the religious organization retains ownership of community spaces
4Factor in community benefits: Projects that include worship spaces, community centers, childcare facilities, or health clinics may gain faster approval and community support
5Prepare for due diligence: Religious properties may have unique considerations like cemetery relocations, historical designations, or restrictive covenants that require specialized legal review
developer reviewing architectural plans with religious leader on church property
What To Watch Next
The fate of House Bill 5396 will signal whether this model has legislative viability beyond Connecticut. Having cleared the Planning and Development Committee, it now awaits full House and Senate votes before reaching Governor Ned Lamont's desk (he has expressed general support for housing solutions). The political process will be revealing: watch whether Democratic and Republican lawmakers find common ground in this pragmatic approach, or if it fractures along traditional partisan lines.
Opposition from Republican Sen. Jeff Gordon—who worries about "preferential treatment" for religious organizations under the Establishment Clause—could spark constitutional challenges even if the bill passes. These challenges could reach the Supreme Court, creating short-term uncertainty for developers but potentially clarifying the legal landscape long-term. Also watch how "religious organization" is defined in final legislation—whether it includes only traditional institutions or newer spiritual organizations as well—as this will affect the scope of available land.
Over the next 6-18 months, watch whether other religious denominations beyond Connecticut adopt similar models. Catholic organizations (with approximately 70,000 acres in diocesan properties alone), mainline Protestant denominations, and Jewish organizations own significant land holdings nationwide. Their collective participation could reshape affordable housing in both urban cores and suburban corridors. Particularly watch the Archdiocese of Los Angeles (with over 1,600 properties) and the Diocese of Brooklyn—if they adopt YIGBY models, it could trigger a national movement.
Finally, monitor implementation metrics: how many projects are submitted under the expedited process, how long approvals actually take, what percentage of units are truly affordable, and how local rental and sales markets respond. This data will determine whether YIGBY is a scalable model or a limited experiment.
The Bottom Line
The Bottom Line
YIGBY represents a pragmatic convergence of urgent social need and strategic real estate opportunity, mediated by institutions with deep community roots. By leveraging 2.6 million underused acres—a resource that has been largely invisible in housing policy discussions—religious institutions are positioning themselves as unexpected but crucial players in America's housing crisis. Connecticut serves as the laboratory for this national experiment: if its YIGBY legislation proves effective in accelerating construction of truly affordable housing in desirable locations, expect legislative replications in dozens of states within the next two years.
The real test will come when the first projects complete the expedited process and deliver tangible housing to needy communities—not just in numbers, but in quality, sustainability, and community integration. If YIGBY can demonstrate that it's possible to build affordable housing quickly without sacrificing quality standards or democratic processes, it could redefine the national debate about land use and community development. In the meantime, developers, investors, and community leaders would do well to understand this emerging model—it could represent one of the most significant opportunities in real estate development of the coming decade.
