Housing prices increasing - an impediment to ministers?

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Polanus1561

Puritan Board Junior
Greetings, I don't have knowledge about this much, that is why I am here.

I have been hearing that the rising house prices indeed do affect ministers (or even seminarians) who may need to more urban areas for ministry purposes. Rental prices are very high at the moment, and purchasing a house (for presumably a large family) in an urban area is hard for anyone to do right now. Yet, ministerial positions can hardly wait for the prices to simmer.

Just wanted to ensure my hunch on this issue is right? Do you know of anyone struggling with this right now? How can churches/denominations help in this?


Blessings.
 
Our church has a housing fund but I'm not sure how it works. We have new housing proposed near our building and the required "affordable housing" will start at around $410,000.
 
A lot of churches, if they don't have a parsonage, will offer a housing stipend to their pastor(s). There are tax benefits for the pastor and the church if they offer a stipend as it lowers their taxable income.
 
I think it depends on the church and other factors. I feel bad for seminary students.

I once knew a pastor of a small church making $165,000 a year. In that case, I feel bad for the man in the congregation making $35,000 a year doing honest work, providing for his family, and still tithing to fund this pastor's wealthy life.
 
A lot of churches, if they don't have a parsonage, will offer a housing stipend to their pastor(s). There are tax benefits for the pastor and the church if they offer a stipend as it lowers their taxable income.
I’m a foreigner in Michigan now. How do you feel about Michigan housing prices now?
 
The norm in the churches where I've served (Canadian Reformed/Free Reformed Churches of Australia) is that churches provide a manse. That solves the problem. There are a few exceptional cases where pastors have purchased their own homes, but sometimes that hasn't worked out very well (i.e. when a pastor receives and accepts a call when the housing market has tanked and he takes a huge hit to his investment).
 
US prices are rising. Why not go overseas to a poor 3rd World country then and minister? Win-win solution.
 
The norm in the churches where I've served (Canadian Reformed/Free Reformed Churches of Australia) is that churches provide a manse. That solves the problem. There are a few exceptional cases where pastors have purchased their own homes, but sometimes that hasn't worked out very well (i.e. when a pastor receives and accepts a call when the housing market has tanked and he takes a huge hit to his investment).
Pastor Wes, I was speaking to a Canadian friend and Ontario has very bad housing market at the moment, which would make calls to American pastors possibly much harder.
 
I knew of an OPC church in the San Jose, CA area who had been without a pastor for 20+ years because they couldn't pay anyone enough to buy a home in the Silicon Valley area. They had to use pulpit supply every week.
 
Pastor Wes, I was speaking to a Canadian friend and Ontario has very bad housing market at the moment, which would make calls to American pastors possibly much harder.
Precisely why we need more Canadian pastors. We have a slightly different situation here: our churches (FRCA) are used to calling Canadians. New Australian immigration rules are starting to make that next to impossible. We need more Australian pastors. Gone are the days when Canadians could depend on Americans, and Australians could depend on Canadians.
 
I don't know if the program is still in effect, but when our church started, they knew the senior pastor, at least, would need to live in a very high cost of living area. Some of the wealthier members of the church invested in equity positions in the pastor's house, to be paid out on a percentage basis when the house was sold, and to get the mortgage to a place where the pastor could afford it. I understand that similar arrangements were made for others on the pastoral staff, although they are more geographically diverse in location.
 
The norm in the churches where I've served (Canadian Reformed/Free Reformed Churches of Australia) is that churches provide a manse. That solves the problem. There are a few exceptional cases where pastors have purchased their own homes, but sometimes that hasn't worked out very well (i.e. when a pastor receives and accepts a call when the housing market has tanked and he takes a huge hit to his investment).
This can certainly be a good option for a church, especially in a high cost area. It's not a perfect solution, however. For example, it means that when the pastor retires he loses his house as well as his income. If the church has not provided sufficiently for him and/or he has not been incredibly disciplined in saving for retirement (often hard on a minister's salary), he may have nowhere to go and no equity. Another situation is when a minister dies young (this happened to my great-great-uncle in the early 20th century): his widow had six months to move out of the manse with four young children, so that the new minister could move in. Providing excellent life and long term disability insurance would be very important.
 
Our church used to have a manse fund, but we got rid of it some years ago in favor or providing financial help for a pastor to be able to buy his own home. This is a much more realistic way to go, especially in light of today's high home prices (especially here in southern California).
 
There are a few exceptional cases where pastors have purchased their own homes, but sometimes that hasn't worked out very well
Wes, I hear the FRC in Legana has called a minister. How is that going? I understand there is a big shortage of homes in Tasmania. I trust Legana is able to find a home for their minister if/when they call him.

Is Legana a suburb of Launceston?
We need more Australian pastors.
I understand the FRCA is starting a theological college in Australia. That is encouraging news. We need more godly ministers on both sides of the Tasman.
 
Wes, I hear the FRC in Legana has called a minister. How is that going? I understand there is a big shortage of homes in Tasmania. I trust Legana is able to find a home for their minister if/when they call him.

Is Legana a suburb of Launceston?

I understand the FRCA is starting a theological college in Australia. That is encouraging news. We need more godly ministers on both sides of the Tasman.

Legana did call a minister last year -- while he initially accepted, eventually he asked to be relieved of the call. So they continue to be vacant.

Like all of the FRC congregations, Legana has its own manse. So no problems on that front. Legana is about 14 km north of Launceston.

And yes, we are working on establishing a seminary here. I'm part of the committee responsible for that.
 
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