It always surprises me when I see golf courses charging either much less or much more than the prevailing market rates.
The Covid Pandemic definitely fueled interest in golf. There are more rounds of golf being played now than before. Supply and Demand certainly plays a role, but there is often a story why a course is charging what it does.
I’ve been involved in the ownership and operation of a semi private golf course for the past eleven years so I am keenly interested in what is happening in the golf industry.
Despite living in an area that is enjoying a fair amount of population growth and enjoying a climate that allows for year round outside golf there are no golf courses being built right now. There are also no new public practice facilities or driving ranges being built.
Many of the courses that are around have had a change of ownership in the past few years. A few have closed. Two have reduced the number of holes they have. A couple have gone private or did some kind of recapitalization plan to keep operating.
To build a decent quality course around here it would cost a minimum of roughly about $10,000,000. This would encompass the cost to acquire the land, hire a design and construction firm, clear and shape the land, install irrigation, and then install the tee boxes, greens, bunkers and turf, purchase tractors, mowers, utility vehicles, a fleet of golf carts, build a club house, machine shed, and cart barn.
Then depending on the course conditions you want, number of rounds to support and other amenities like restaurants, locker rooms, pro shop, practice facilities, etc. it will cost you at least $1,000,000 - $2,000,000 every year to staff and operate the course.
It is usually cheaper to buy an existing course than to build one. Often because the previous owners aren’t making money. Golf courses are often lucky to cover the operating expenses from their revenue. If they are private they have membership dues to build a budget around. Municipal courses are generally getting some type of subsidies to operate.
Depending on the area of the country the land costs and labor rates might be higher or lower, which could change the math a bit. Equipment costs, fuel and chemicals though are pretty standard across the country.
I’m hopeful that the current spike in interest in golf will continue. Even so I don’t expect the supply of golf courses to change much.
The Covid Pandemic definitely fueled interest in golf. There are more rounds of golf being played now than before. Supply and Demand certainly plays a role, but there is often a story why a course is charging what it does.
I’ve been involved in the ownership and operation of a semi private golf course for the past eleven years so I am keenly interested in what is happening in the golf industry.
Despite living in an area that is enjoying a fair amount of population growth and enjoying a climate that allows for year round outside golf there are no golf courses being built right now. There are also no new public practice facilities or driving ranges being built.
Many of the courses that are around have had a change of ownership in the past few years. A few have closed. Two have reduced the number of holes they have. A couple have gone private or did some kind of recapitalization plan to keep operating.
To build a decent quality course around here it would cost a minimum of roughly about $10,000,000. This would encompass the cost to acquire the land, hire a design and construction firm, clear and shape the land, install irrigation, and then install the tee boxes, greens, bunkers and turf, purchase tractors, mowers, utility vehicles, a fleet of golf carts, build a club house, machine shed, and cart barn.
Then depending on the course conditions you want, number of rounds to support and other amenities like restaurants, locker rooms, pro shop, practice facilities, etc. it will cost you at least $1,000,000 - $2,000,000 every year to staff and operate the course.
It is usually cheaper to buy an existing course than to build one. Often because the previous owners aren’t making money. Golf courses are often lucky to cover the operating expenses from their revenue. If they are private they have membership dues to build a budget around. Municipal courses are generally getting some type of subsidies to operate.
Depending on the area of the country the land costs and labor rates might be higher or lower, which could change the math a bit. Equipment costs, fuel and chemicals though are pretty standard across the country.
I’m hopeful that the current spike in interest in golf will continue. Even so I don’t expect the supply of golf courses to change much.
and a local resident that lives within that club can't even use the practice facilities or PAY to play even one round of golf a month.. .
