Redeveloping Abandoned Golf Courses Increases Home Values

When asked what to do for fun, Floridians will often reply “spend a beautiful day putting on the green.” Florida is well known for its beautiful green pastures — it actually has more golf courses than any other state.

But what comes with the territory of having the most golf courses in the country? A record-breaking amount of golf course closures.

In 2018, 21 million golfers were identified as regular players, a steep decline from the 30 million regular golfers reported in 2002. As a result of increased competition in the recreation space, a decline in the number of golfers in general, and the rise of operating costs, many golf course owners have been forced out of business. So, what happens when golf courses are no longer operating? Nothing good.

After a course closes, the communities that once enjoyed living near one of their favorite hobbies are left to deal with an overgrown eyesore that negatively impacts the value of their properties. What was once a beautiful view, is now an open field prone to generating crime such as vagrancy, loitering, and other unwanted nuisance behavior.

A recently released study on South Florida real estate, by John Burns Real Estate Consulting, found that homes in close proximity to abandoned golf courses have lower values than they would otherwise. The study also found that, on average, as soon as redevelopment starts on a closed course, surrounding home values begin to increase immediately. The report shows how important thoughtful land revitalization is for increasing home values and also outlines its correlation with increased home values over time.

• An excellent example of this phenomenon is the former Sabal Palm Golf Course — which eventually became two new developments called Hidden Trails Slides and Manor Parc. From the beginning of the closure of Sabal Palm Golf Course in 2010, property value adjacent to the closed golf course declined for the following three years. Once Hidden Trails Slides and Manor Parc residential construction began on the closed course in 2014, property values of homes adjacent to the course began to increase. Now, home values in Hidden Trails have outpaced the existing neighborhood (i.e., ZIP) home values by a cumulative 31.4% since 2010, resulting in an average gain of $64,485 in value. Manor Parc property adjacent to the old golf course increased by 37.1% more than homes in the same zip code from 2010-2020.

• Closed in 2006, Hillcrest Golf Course in Hollywood, Florida received 2016 City Commission approval for the development of 151 homes on the old course. As a result, condos adjacent to the course increased in value by 14.7% more than existing condominiums in the same ZIP code. Value was also added to the neighborhood through development by including a large water feature for residents to enjoy.

• Lennar received approval to develop the failing Crystal Lake Golf Course property in 2018. Since completion, the value of existing homes adjacent to the former Crystal Lake Golf Course has outpaced existing neighborhood (i.e., ZIP) home values by a cumulative 8.3% since 2012, resulting in an average gain of $16,598 in value.

• The Raintree Golf Course Pembroke Pines opened in 1984 and was sold to the city of Pembroke Pines in 2009. By January 2016, the city sold Raintree to several development groups, and construction was underway. Their plans included water features for current residents to enjoy. This resulted in the values of existing homes adjacent to the course outpacing existing home sales in the same ZIP code by 17%.

The big takeaway is that the redevelopment of abandoned and underutilized properties is beneficial for not just communities, but also for each individual who lives in the neighborhood.

Local homeowners adjacent to former golf courses no longer have a run-down and overgrown lot as their backyard. Instead, residents can maximize their communities and earn more value in their homes through thoughtful land revitalization.