Motivation for Buying

While “location, location, location” always has been the first rule in real estate, it’s less important when it comes to choosing a golf community. There are great golf courses and communities all over the country, from Florida to California, so the big lure is less the location than the experience provided by the community. “We’re in kind of a different paradigm,” says Bill Houghton, vice president of marketing for Reynolds Plantation. “People are buying into a lifestyle.”

Additionally, most buyers in golf communities intend to live there for the long term. They’re not looking to turn over properties quickly for a profit. “We’re not selling to a lot of speculators,” says Houghton. “We don’t have many investor purchases. Most people are buying and using the properties.”

Baby Boomers

“The demographics are in our favor,” says Houghton. “Statistics show that people start looking for a second home at age 47.” Right now, the last of the baby boomers are reaching that age, and the first baby boomers have approached retirement age. So for the next 20 years, golf communities—retirement havens for golfers and non-golfers alike (the numbers show about 65 percent of homeowners in golf communities do not play)—will remain in demand as baby boomers continue to retire in huge numbers.

This phenomenon already can be seen in the disparity in recent growth between golf communities—which are doing record business—and the entire golf market, which has remained stagnant. The two main factors cited for the lack of golf’s growth, time and cost, don’t apply to buyers of golf-community homes. They have plenty of both and will continue to be avid golfers—and golf-community homeowners—for decades.

Value

“Compare the cost per square foot [at Reynolds] to a suburb and it’s almost always in our favor,” says Houghton. “As housing has escalated so dramatically in Atlanta and everywhere else, suddenly we look like a bargain.”

And that’s just comparing physical properties against each other. Golf communities have added values that make them even better deals: Many homes come with golf memberships, and communities often offer one-stop shopping for amenities unavailable to regular homeowners, like beach access, tennis, social events, concierge service, continuing education programs and dining.

Competition

In the current housing market where demand far outstrips supply, speed is important in purchasing the right property. But buyers of golf-community homes have the luxury of looking around more for the right fit.

Often, buyers aren’t looking for certain school districts. Nor do they have to be within a certain commuting distance of a job. Free of these constraints, buyers can consider any number of communities to fulfill their needs: quality golf, other activities, a sense of belonging. That means more competition among the communities, and the golf real estate game can be a little more of a buyer’s market than the general real estate scene.

In addition, buyers of golf-community homes tend to be well-informed consumers. “These are savvy buyers,” says Shiels. “They’ve done well in their business lives and they may be rewarding themselves for years of hard work.”

Recognizing the need to provide full-service experiences to lure buyers, many communities are promoting other aspects of the development, in addition to quality golf. “At one time, it was important to have the biggest, most opulent clubhouse and a big-name architect,” says Shiels. “But I think the softer program elements are even more important: activities, relationships, being part of a community and getting to know the other property owners.”

In the end, it all comes down to lifestyle and a sense of community, which are very difficult to put a price on, bubble or no bubble.