To support the need to refute the purchase of the Stonebridge golf course by residents, please refer to the list of credible articles about the issues with this proposal.
Many communities around the world are experiencing the same issues as Stonebridge and according to the sources the purchase of the golf course is not a viable solution.
According to the Wall Street Journal and Forbes, in many cases where residents purchased the golf course property values actually declined when compared to allowing developers to build on the property.
“the bigger story involves the sport’s aging demographics and the athletic tastes of Millennials, who just aren’t that into an expensive, poky sport that provides few health benefits. Unless the golf industry can change its ways, the decline will mean a lot of empty greens across the country. How that land is used—or isn’t—could reshape America’s suburbs for decades to come.”
“Golf courses, after all, are often interpreted as high-status amenities that raises the value of neighboring homes, despite evidence to the contrary. “
“…courses drove the absorption and pricing of many real estate developments, and even non-golfers purchased these properties because of the perceived value — but without understanding the full cost of ownership in a golf-based community. Many of these buyers and those who came after the market correction had no idea of the value risk of buying into a community that was not supporting its golf club. Essentially, property values were being subsidized by the golfers and club members supporting the club.”
“The sport’s declining popularity muddies the future of golf course-based communities, says David Cobb, south Florida regional director for Metrostudy. “Most golf courses lose money and here in South Florida several have been converted to residential housing developments particularly in Broward County,” he says. While a few builders in his market are having success with golf, “generally builders and developers are shying away from including golf courses in their new communities.”
“There’s also a bit of myth in play about the value of golf course living. “There’s this misconception that ‘I live on a golf course therefore my house is so much more valuable,’” says Nunziata. “We don’t see those homes growing at the same pace as the other homes on the market. It puts a big question mark over the property. It has a paralyzing effect on the value.” So while living on a golf course may not pull property values down, they don’t automatically raise them either – kind of like a swimming pool.”
“…developers and community stakeholders have been a bit naïve about the future of the sport. “It was put into these master communities not because the golf course itself was to be a financially stable enterprise that was going to make money, but really, just to sell homes,” he says. “This was without much consideration about what happens down the road, regarding what happens to the golf course or who ends up owning it.”
“…tastes in recreational activities evolve, builders are still betting on golf course communities, but with refinements for a changing demographic. “We’re really seeing an evolution of the traditional golf course community. People want a variety of amenities and activities in addition to golf – such as walking trails, fitness activities, boating, food and beverage, and communities are adapting to these changing tastes,” says Dean Lytton, regional operations executive for KemperSports…”
““We still had people who came out and thought they owned the golf course and that golf needed to come back which was a false hope, not even close to reality,” says Nunziata. “We had to find the logical segment in the community and eventually they realized the values around them were skyrocketing while their clubhouse was crumbling.” The pitch worked as the community jumped onboard and after some negotiation gave the greenlight to over 500 new homes.”
“Consider your demographic. Millennials are not as interested in playing golf but there are millennials who do play, according to developer Syd Kitson. “They have so many other interests it’s hard for them to go out on afternoon and burn four to five hours, they’d rather be with their families or they have other activities. They’re an active group of young people, they love to travel. But when they settle down, buy a home, have children and start to turn into their parents, that all starts to change,” he says.”
“Developer Steve Wynn’s uber-posh course in Las Vegas was closed late last year as new plans for the land included a manmade lagoon. In Palm Springs, Calif., a cultural touchstone for the sport, a failed course is being turned into an orchard of olive trees by Freehold Communities that’s building a community called Miralon. The tide in amenities has already turned away from the sport.”
“The Wall Street Journal takes a look at the issue, backed up with sobering stats. More than 200 courses closed in 2017, while about 15 opened, according to the National Golf Foundation. That speaks to the decline in interest in the sport, largely pinned on fewer younger players picking up clubs. Meanwhile, about 1,200 private clubs exists that include homes on or near a course, and most were built in the 1980s and ’90s.”
“…those who try to sell often discover a disturbing reality: “What we are consistently seeing is that those properties, all else being equal, are selling way below what they should be selling for,” says a Florida real estate economist. One resident of the Fountains of Palm Beach community, for example, says houses that once went for $400,000 are going for half that price. Meanwhile, her annual dues have risen from $5,000 to $24,000.”
“Lawsuits pile up and fairways fall into disrepair as younger Americans shun golf, leaving behind homeowners who paid a premium for life on the links”
“New data from Sageworks, a financial information company, show that U.S. golf courses and country clubs, on average, face persistent unprofitability. And sales have sputtered downhill after a small rise in 2012, according to Sageworks’ financial statement analysis of privately held courses and clubs.”
“Average net profit margins for privately owned golf courses and country clubs (NAICS 713910) have been negative for several years. Over the last 12 months, for example, golf courses and country clubs lost about 2 cents for every dollar of revenue generated by memberships, club shop sales and restaurant meals. That’s about the same as in 2013 and only slightly better than the -4% margin, on average, for 2012.”