Why Abandoned Golf Courses Need to be Refreshed: Increases Home Values

One reason why people love golf is because it is an inclusive sport. Men, women, and children of all ages can enjoy a game together, making it a great choice for a family outing. Even despite its charm, less people go golfing than they once did and more golf courses fail as a result. Recent statistics show that 21 million regular golfers played in 2018, representing a steep decline from the 30 million regular golfers in 2002. Despite their best efforts, not every golf course owner can survive or keep up with the times. 

Home to roughly 1,250 golf courses, Florida has the potential to support any golfing-enthusiast’s habits. Unfortunately, Pellucid Corp. data shows that golf no longer attracts the players it once did. As of 2018, golfing has seen a drop of more than 30 percent from a decade ago. Since Tiger Woods won his third Masters back in 2002, golfing has experienced a steady decline. The Tiger Woods era, considered the golden years of golf, is long gone and golf participation is fading along with it. 

In 2016 alone, the National Golf Foundation reported 211 courses were permanently closed, while only 15 new courses opened nationwide. Even with more than 120 million visitors a year, there aren’t enough fee-paying players to sustain multiple courses in every suburb and exurb from Pensacola to Palm Beach. Updating and remodeling existing courses is very expensive and since there are more golf courses than golfers these days, most course owners decide to sell.

So what happens when courses go out of business and are abandoned? They turn into an absolute eyesore. Unmaintained landscaping and overgrown grasses become perfect living quarters for vermin and other pests. Abandoned course properties become difficult to secure, leading to increases in trespassing, loitering and all of the unwanted behavior that comes with it. It’s not surprising that fallow golf courses are statistically shown to depress the home value of each and every property surrounding them. 

A recent real estate study by John Burns Real Estate Consulting found a correlation between lower-than-average home value for properties in close proximity to abandoned golf courses. The study went on to find that once construction begins on the closed golf course property, values start to increase immediately. The same report showing the decrease in value, also outlines the importance of redeveloping the vacant property and how that redevelopment is associated with increased value over time. Below are some of the specific examples used in the study:

• The case of the Bay Point Golf Club clearly shows how fallow golf courses negatively impact surrounding home value. Data indicated that the value of homes surrounding the closed course significantly lagged behind homes in the Tampa MSA by a cumulative 25 percent since 2010, resulting in an average value loss of $82,943. 

• Another example is the former Countryside Executive Golf Course in Clearwater, FL. The 44-acre, 18-hole course, closed in 2005. ​​The study shows that existing condos surrounding the closed course lagged behind typical values in the Tampa MSA by a cumulative 5.0% since 2010, resulting in an average loss of $5,798 in value. After the course property was redeveloped, surrounding condos outpaced existing neighborhood (i.e., ZIP) home values by a cumulative 32.0% since 2010, resulting in an average gain of $26,887 in value to each existing condo unit over what may have been with no redevelopment.

Although there may be no saving golf, for homeowners living next to failing or failed golf courses, there is still hope. Studies show that the redevelopment of vacant properties, like golf courses, benefit entire communities. Once a course is converted successfully, surrounding homeowners are no longer forced to see a run-down and overgrown lot and the final product rapidly improves the aesthetic of the neighborhood and raises surrounding home values.