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Golf course communities aren’t just for golfers anymore. Who’s buying these houses? By James A. Ambrosio
comes to buying a house situated on a golf course, the old real estate adage “location, location, location” takes on another dimension. “The site of your home is so important,” says Michael J. Quinn, a golf course homeowner in Coto de Caza, California. “Always get on the tee box, never on the fairway,” he says, where an errant drive could break your familyroom window. But, according to developers, actual golfers make up only a portion of the people who choose to live in these communities. “There’s a natural self-selection that occurs,” says Kira McCarron, vice president of marketing at Toll Brothers, a major home builder based in the Philadelphia area. “If everyone who bought a home in a golf course community wanted to play on Saturday morning, it would be jammed.” So who is moving into these communities? Starting in 1990 with a development in the Philadelphia suburb of Blue Bell, Toll Brothers tapped into the growing demand among northerners for golf course homes near where they live and work now, instead of where they might retire later in life. The development contained a mix of “move-up” homes for growing families along with units aimed at empty-nesters looking for a nice, but smaller, place to live. “We learned there was a huge demand for this type of product,” says Frederick N. Cooper, vice president of finance at Toll Brothers. By mixing the kinds of homes available within a community—for example, offering townhouses and villas along with single-family residences—Toll Brothers found it could “capture a broader range of buyers.” Residents, developers, and industry observers cite a number of reasons for the growing popularity of these communities. First there are the amenities, ranging from a clubhouse with a
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good restaurant to a swimming pool—that the homeowner doesn’t have to maintain—to the opportunity to meet people. Then there’s security. Many golf course communities are gated and give residents the feeling that they are in a safer environment. And there’s market value. “Homes can carry a 30% to 35% premium if they have the right view,” says Judy Thompson, a spokesperson for the National Golf Foundation (NGF) in Jupiter, Florida, which tracks the golf business in the U.S. “A lot of people just like to look out on a green, scenic vista that they don’t have to mow or trim.” And, finally, in many new developments in the North, the proximity to work or, in the case of retirees, to children and grandchildren motivates buyers. Whether they’re affluent working people looking for a secure community with numerous amenities or empty-nesters seeking to downsize their living space while maintaining a quality lifestyle, an increasing number of families are making

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their homes along well-groomed greenways. If a 1.62-ounce dimpled white sphere is sliced into the backyard occasionally, well, it’s a minor inconvenience, judging by the popularity of housing developments built around golf courses. While Arizona, the Carolinas, Florida, and other Sun Belt states still lead the nation in the number of golf courses and related developments, this type of community is springing up in seasonal climes such as Connecticut, Michigan, New Jersey, and Pennsylvania—even Montana and Wyoming. “Building these developments is not dictated by the weather anymore,” says David Lott, editor of golfcoursehome.net, a Website that supports builders and sellers of homes in these communities. “We feature 66 communities from 20 states on the site and have an online database of about 500 communities in 42 states.” According to NGF, of the 524 new courses that opened in 2000, 46% were associated with a real estate development,

both the East and West coasts. In addition to golf, his current community offers an equestrian center, a racquet club, and jogging trails. Quinn says those features, along with its security, were important considerations in his decision to buy there. “When you are a family guy, security is important to you,” he says. With two daughters, he always looks for extras like a “good junior golf program” or other activities that would interest them. And while he has found that many residents don’t play golf, there are many avid golfers around. “I live in this community to play golf, but also to meet other businesspeople,” says Quinn. “It’s been very important to me to live in a golf course community from a business standpoint.” Still, he says, as a golfer he likes to play “a desirable course.” McCarron believes that working with a well-known golf course architect to create a desirable course helps to sell developments, but that name by itself won’t sell the property. The

There’s a growing demand for golf course homes where
people live and work now, instead of where they might retire
says Thompson. NGF figures indicate that roughly 3.7 million golfers, or 15% of all golfers nationwide, are permanent residents of a golf course community. Another 3% of all golfers own a vacation residence in a golf course community. Cooper says that from a developer’s perspective, golf course communities are “very profitable. We now have 10 master-plan golf communities either open for sale or soon to be open, with over 10,000 home sites available.” The locations range from Florida and other states in the Southeast to the Mid-Atlantic states and the suburbs of Detroit. The development and marketing of golf communities has changed in traditional retirement areas, as well. “It’s a very different sell than it was 20 years ago,” says George Casey, president of the South Florida division of Arvida, a residential and resort-community developer. “Then it was Caddyshack personified.” Clubhouses were large and featured formal dining rooms, men’s grills, and card rooms. Today, Casey says, these communities have become much more family oriented. Buyers tend to be younger, affluent, and seeking a level of exclusivity. Clubhouses have shrunk in size and restaurants tend to be more casual. Developers look to build a complete “social infrastructure” into their communities by adding bike paths, jogging trails, and other non-golf features. Quinn, chairman and CEO of a medical-device company in Southern California, is a veteran of golf course living on usual factors in a real estate purchase, such as price, location, and amenities, also have to be right. “We have worked for years with Palmer Course Design, and we feel [Arnold Palmer’s] stature and association with the design and planning of our communities is a definite plus. It adds a level of branding that’s important to us.” But Casey disagrees with the need to have a golf course designed by a “name.” “Those kinds of designers build courses that are geared to true golfers, which means they are hard as hell to play. Most people want an enjoyable course that doesn’t kill you.” If you are thinking about buying a home in a golf community, Quinn says that “like any investment, you should do the kind of diagnostic work you need to do before making it.” He advises prospective buyers to research the company behind the development. “Have they been successful in the past? If they have been, then you’ve got a good shot they are somebody who understands what works.” He also suggests getting a copy of the club’s membership roster and contacting some members. “I called people up and asked what they liked. People will tell you what they think,” Quinn says. And that tactic may give you the entrée to your regular foursome.
James A. Ambrosio is the managing editor of Tramp Steamer Media in Trenton, New Jersey.
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