A number of community residents (golfers and non-golfers) have wondered what impact having a golf course in the community has on their home value. We all believe that having a well maintained golf course should have a positive impact on home prices as well as overall community aesthetics, but what are some of the details? In a Green Valley News article by Steve Choice, Canoa Hills (now known as San Ignacio North) residents have found losing a golf course has a significant, negative impact on home values. In an article by Mr. Mike Kahn, Golf Course Management Consultant, identified a 30 percent reduction in home prices in Canoa Hills. In the Canoa Hills case, the future of the course remains uncertain with overall golf course deterioration evident.
In the same article by Mike Kahn (as mentioned above) his research focused on the six golf course communities where the golf course closed (between 2010 and 2012, Canoa Hills being one) home values reflected a 19 percent to 30 percent decrease. Researching failed golf courses in gated communities (with similar amenities as Quail Creek), where an HOA is involved, the time and cost to fight the potential impact of golf course land reuse/rezoning can be substantial both in time and money. Homeowners of failed golf courses found that the loss of green areas, the loss of open areas, reduced maintenance of vegetation and potential re-use of the vacant land, all added to the dramatic loss in sense of community and transformation of the neighborhood. In all cases home values suffered due to the loss of the golf course.
While research found nationwide, as a result of a community golf course failing, homeowners experienced a 13.2 percent to as high as 45 percent decrease in their home value regardless of whether they lived on the golf course or off the course. Using Mike Kahn’s research, as well as many others, a house valued at $300,000 and, using a 20 percent reduction rate, the loss of our golf course could reduce the home value by $60,000.
The other interesting point noted in an article posted by Mike Sullivan, Realty Consultant, on a failed golf course, pertained to the length of time it may take to sell your property. His research of failed golf course communities found the average time to sell a home could increase by as much as 52 percent.
Living in a golf course community (whether you play golf or not, or you have a home directly on the golf course or not), a well-maintained golf course adds tremendous value to your investment. It can also reduce overall re-sale time when that becomes necessary.
The focus of the Green Committee is to ensure we have a well maintained, aesthetically pleasing, golf course. One huge benefit for all Quail Creek homeowners (including Green Committee members!) is maintaining home and overall community value.