FAU Study: Golf Courses Still Boost Home Prices

Golf courses around the country face an uncertain economic future but homes adjacent to them continue to command higher prices from prospective buyers

Palm Harbor Golf Course: Google EarthBOCA RATON, Fla. – January 26, 2017 – While golf courses around the country face an uncertain economic future, homes adjacent to them continue to command higher prices from prospective buyers, according to a new study of real estate transactions in South Florida by faculty at Florida Atlantic University.

The study looked at more than 10,000 transactions from properties in Palm Beach, Broward and Miami-Dade counties that sold and closed in 2015, and FAU researchers concluded that having a property adjacent to a golf course adds between 8 percent and 12 percent to property value on average.

"Preliminary results from statistical pricing models suggest that properties receive a pricing boost," says Ken Johnson, Ph.D., a real estate economist and an associate dean of graduate programs and professor in FAU's College of Business. "Thus, there is strong evidence to concluded that golf courses remain a positive draw to potential property owners."

With more than 800 golf courses closing in the United States in the last decade, however, residents, developers and municipal officials around the country are facing decisions on whether to convert underperforming golf properties to housing developments or keep them as golfing communities.

"The strong statistical evidence supporting a pricing boost for being adjacent to a golf course should help property owners, developers and city officials make quicker and more financially fair decisions," says Ksenija Bogosavljevic, a graduate student who's working with Johnson on the study as part of ongoing research on the viability of golf course communities.

In South Florida, Johnson acknowledged that there are many golf courses trying to decide whether or not to continue in the face of failing financial performance. Many golf properties are declining into a state of repair that could negatively impact adjacent property values.

On the other hand, the remaining demand for golf and being adjacent to courses could create a market scenario whereby being adjacent to a course could actually add a premium to property value, on average, he added.

"Uncertainty over value destroys deals, and these findings reduce that uncertainty and should result in quicker resolutions one way or another," says Johnson. "In the end, no one wants a vacant course."

© 2017 Florida Realtors. All rights reserved. Reprinted with permission.

2 replies
  1. George Edward Chuddy
    George Edward Chuddy says:

    Palm Coast Golf Club

    Subject: Levitt & I.T.T. “Del Mar” Model and Palm Coast Golf Club Historical Marker

    Dear Mr. Chuddy,

    I am pleased to say that your marker application for the Levitt & I.T.T. “Del Mar” Model and Palm Coast Golf Club was approved by the State Historical Marker Council at their meeting on January 11, 2017. Congratulations! The approved text for your marker is attached.

    Please carefully proof read the marker text and sponsor information to make sure they read exactly as you wish, then complete the approval statement below the text and return the page by fax (850-245-6583) or as an emailed pdf. If you have any questions regarding the marker text please reply to this email or call me to discuss.

    I will also need the marker’s billing and shipping information (names, addresses, and telephone numbers). Please note that the marker’s shipping address must be a street address and be a place of business open during regular business hours. Markers cannot be shipped to a residential address or to a post office box.

    Following receipt of this information I will order your marker from Sewah Studios. Marker manufacture and delivery generally requires 6-8 weeks. The cost of your marker will be $1,900, and you will not be billed for this amount until your marker has been fabricated. Please send your payment to Sewah Studios—do not send payment to this office!

    You will receive instructions from Sewah Studios on how to correctly install your marker. Please let me know when your marker has been erected so that I may update our marker database and website. Finally, I would appreciate receiving one or two photos of your marker (digital preferred) after it has been placed for our program files.

    There are small matching grant funds available that will cover half of the cost of the marker. You can find information regarding the Historic Preservation Grants Programs

    ( IF you want to see how the Molten Aluminum makes a Historic MARKER just google Sewah Studios Marker. This Additional Historic MARKER is right now being manufactured and should be delivered to Palm Coast in / about 6-8 weeks – It will be installed on Clark Lane and intersection of Cooper Lane).

    This is the Approved TEXT:

    (Title:) LEVITT & I.T.T. ” Del Mar Model and Palm Coast Golf Club

    The Levitt & International Telephone & Telegraph Corporation (I.T.T.) purchased 68,000 acres in 1969 for the development of a planned community. The site, named Palm Coast, offered numerous amenities, including a marina and golf course. Built in 1972, this home, the “Del Mar,” was one of the nine model homes showcased by Levitt & I.T.T. Designed in the Mid-Century Modern style, it features a stucco exterior with faux brick trim, and a hip roof. The “Del Mar” is located in the “Showcase Golf Course Neighborhood,” which is enveloped by the Palm Coast Golf Club course. Designed by William Amick, the course was marketed as being one of the most challenging in Florida. The proximity of houses like the “Del Mar” to the course helped drive sales. In 1978, the Palm Coast Golf Club became the home course of Ladies Professional Golf Association star Nancy Lopez, and, by 1979, Lopez was the resident touring pro for Palm Coast. The Palm Coast Golf Club was renamed The Palm Harbor Golf Club in 1981. The course was sold to the Centex Corporation in 2006 and the City of Palm Coast acquired it in 2007. The golf course remains a very important community resource.

    Character count: 1,164

    I approve the above marker text and request that it be used on our historical marker.

    Name (please print) ______________________________________________________

    Signed ___________________________________________________ Date_________

    The above was just presented to City Council. I think they are having a Workshop on this – Grants, Contributions, donations, etc.

    We are hoping that the Golf Club would be used as a weekend Venue to show things such as ‘ The Merv Griffin ‘ Show about ‘ The Palm Coast Project ‘…and perhaps the H.S. Band will present ‘ Palm Coasts Festival Park March ‘ and all the many other Orchestral Presentations about Palm Coast by Dr. Gabriele, or the Power Point about the restoration of a Levitt & I.T.T. ‘ The De Soto ‘ Model, or ‘ Garfields Bicycle Tour of Palm Coast ‘, etc…perhaps the donations received for all these Events could be used for ‘ raise the roof ‘ Fund for the Palm Coast Arts Foundation.

    There could also be Marine Restoration Projects for Palm Coasts’ Paddlewheel River Boats creating further platforms for FundRaisers and Events.

    Dr. Charles T. Gabriels ‘ Musical Compostions about ‘ Palm Coast ‘:

    Navy Band Orlando Thrills Capacity Crowd at Center
    By Jim Miskelly
    PALM COAST–It was a first for Palm Coast. In an ideal setting for a Sunday afternoon band concert, an overflow crowd estimated at nearly 1,000 packed the Daytona Beach Community College Flagler Center’s new outdoor theater for the performing arts for a performance by the Navy Band Orlando, under the direction of Lt. William D. Myers.
    Palm Coaster Professor Charles T. Gabriele conducted the band in playing his own composition, “Naval Training Center, ” and the premier performance of his “Palm Coast Festival Park March.”. commerating the opening of the Cultural Arts Pavilion. Gabriele, former composer in residence of the Naval Academy Band, earned standing ovation from the audience and the band alike. Gabriele dedicated the march to ICDC President Alan Smolen, who in turn shared the honor with ICDC Executives Gary Walters and Vince Viscomi for their part in planning the Center.
    The program opened with the ‘ Star Spangled Banner,” setting the pace for a patriotic afternoon. Center Director Larry Goodemote welcomed the audience and County Commissioner Merhl Shoemaker read a Flagler County Commission resolution proclaiming May 28, 1981 as ” American Legion Flagler Post 115 Day.”
    The American Legion Post chartered in 1919 is the oldest organization in Flagler County, and was a sponsor of the Concert with the cooperation of DBCC;s Flagler Center and ICDC . Shoemaker noted this was the first event at which all local veterans’ organizations were regresented and welcomed American Legion Flagler Post 115, Palm Coast VFW Post 8696, Flagler County VFW Post 5213. DAV Chapter 86 and Flagler Palm Coast Chapter MOWW. Shoemake presented a copy of the resolution to American Legion Post Adjutant Cora Buckles.
    Rear Adm. Pauline M. Hartington, USN, congratulated Professor Gabriele for his years of service in the Navy and cited him for his Compositions.
    The Concert concluded with “Servicemen on Parade medley of familiar service songs, with an invitation for former veterans to stand when their service connected song was played.

    I hope this gives the newer Palm Coasters a ‘…sense of Community..’ and a great ‘…sense of Place…’
    Thank you very much for listening.

  2. Ray Douglass
    Ray Douglass says:

    Yes, golf courses do boost home values.

    Yes, golf courses do boost home prices but local economies must support golf courses. The Matanzas Woods GC is being foreclosed on by the city and it Will not be a golf course. So, it sounds great in principal that courses do boost home values but not in practice in L.

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