Trevor Ng
Golf is not closed. In fact, the number of golf courses in the US has been increasing. There were more golf courses than McDonald's locations in the US as of 2025, with a total of 15,962 courses at 13,952 facilities. While golf course closures are inevitable, they are not a reflection of the sport's popularity. The number of annual course closures has decreased for five straight years, with the 2024 total dipping to its lowest levels in two decades.
| Characteristics | Values |
|---|---|
| Golf course closures in 2023 | Lowest in a year since 2004 |
| Number of golf courses in the U.S. | 16,000 |
| Golf course closures in 2024 | Lowest in two decades |
| Golf course closures | Not a reflection of golf's popularity |
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What You'll Learn
- Golf course closures are not a reflection of golf's popularity
- Golf course closures are inevitable
- Golf course closures are driven by local micro-economies and customer needs
- Golf course closures are often due to higher and better use
- Golf course closures can be resurrected through renovations, reconstructions, and ownership changes
Golf course closures are not a reflection of golf's popularity
Golf course closures are an inevitable part of the ebb and flow of the industry and are not a reflection of the sport's popularity. Businesses come and go, and golf is a business driven by local micro-economies and customer needs. The 20-year course-building boom, which saw a massive increase in competition, inevitably led to some closures, especially of less desirable courses.
In 2023, there were fewer course closures than any year since 2004, and the number of closures has decreased for five straight years, with 2024 seeing the lowest number in two decades. This is despite the demand for land, especially in urban areas, and the existing oversaturation of the market.
The closure of a golf course can be more noticeable than the loss of a local restaurant, for example, due to the large amount of green space that is often replaced by commercial or residential real estate. This can lead to a sense of loss of community and history. However, golf course closures are not indicative of the health of the sport.
The U.S. golf market has seen notable participation and play gains in recent years, with a net gain in the number of courses and facilities since 2022. With nearly 16,000 courses in total, the U.S. is exceedingly well-supplied with golf courses, and the number of closures is minimal compared to the overall supply.
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Golf course closures are inevitable
Golf course closures are an inevitable part of the industry's ebb and flow. While golf's popularity may fluctuate, the closure of a golf course is often more complex than a simple reflection of the sport's overall health. The closure of a golf course can be an emotional event for a community, as it often represents the loss of green space, community, and history. However, it is important to recognize that businesses come and go in every industry, and golf is no exception.
The golf industry has experienced a notable supply correction in recent years, with annual course closures outpacing new openings. This dynamic is driven by several factors, including local competitive pressures, lucrative land sales, and the existing demand for land in urban areas. The golf market in the U.S. became oversaturated with the addition of more than 4,000 golf courses over a 20-year span, and this building boom has since tapered off. The reduction in new course construction has contributed to the decrease in overall supply.
While the number of golf courses in the U.S. remains stable, with nearly 16,000 courses available, the demand for land, especially in urban areas, will continue to drive closures. These closures are not necessarily a negative reflection on the sport's popularity but rather a response to market forces and changing customer needs. Micro-economies play a significant role in the local golf landscape, and the balance of supply and demand can vary across different regions.
Despite the inevitability of closures, the golf industry is showing signs of resilience. The number of annual course closures has decreased for five consecutive years, with 2024 seeing the lowest number of closures in two decades. Additionally, investment in existing facilities is on the rise, with an increasing number of renovations, reconstructions, and resurrections taking place. These factors contribute to a stable supply outlook for the industry.
In conclusion, while golf course closures are an inevitable aspect of the industry's dynamics, they do not signify a decline in the sport's popularity or health. The golf industry is adapting to market forces, and the balance of supply and demand is stabilizing. With a vast number of courses still available across the U.S., golf continues to be a popular sport, and the industry is well-positioned to meet the needs of its players.
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Golf course closures are driven by local micro-economies and customer needs
Golf course closures are driven by a multitude of factors, including local micro-economies and customer needs. The golf industry, like any other, is subject to the forces of supply and demand. In the context of golf, this refers to the number of courses available and the level of golfer participation and play.
The US golf market experienced a 20-year course-building boom, resulting in increased competition and an oversaturated market. This led to the closure of some less desirable courses, as golfers were drawn to courses with higher quality and better prices. The building boom was largely driven by real estate, with many golf courses constructed to sell nearby homes. As a result, golf course acreage can often be more valuable as residential or commercial real estate, leading to course closures.
Local micro-economies play a significant role in the closure of golf courses. Competitive pressures within local markets can influence the decision to close a course, especially when owners are presented with lucrative opportunities to sell their land. Additionally, the demand for land, particularly in urban areas, can drive golf course closures as this land is sought after for residential and commercial development.
Customer needs also contribute to golf course closures. When a golf course closes, it often generates a strong reaction from the community due to the loss of green space, community, and history associated with the course. However, this does not necessarily reflect a decline in the popularity of golf. Instead, it could indicate a shift in customer preferences and an increase in the variety of golf course options available.
In recent years, the number of golf course closures has decreased, with 2023 and 2024 experiencing the lowest number of closures in almost two decades. This decrease in closures, coupled with the increased development and investment in existing facilities, has led to supply stability in the golf industry.
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Golf course closures are often due to higher and better use
Golf course closures are inevitable, and they are often due to "higher and better use". The closure of a golf course can be impactful and generate conversation, especially given the sizeable footprint of a golf course and the loss of community it entails.
In recent years, golf course closures have been the result of "higher and better use". This means that the land is often sold and repurposed for multi-use parkland, nature conservation areas, or development projects in high-density population centres. For example, the Highlands Golf Club in Grand Rapids, Michigan, was purchased by Third Coast Development with the intention of transforming the 121-acre property into a housing development. However, it was eventually sold to the Blandford Nature Center, a non-profit organisation.
The existing demand for land presents a lucrative exit strategy for long-time owners, especially given the increased competition in many major markets. The quality of golf and the price typically increase with more competition, which can lead to the closure of less desirable courses. The golf industry experienced a building boom from 1986 to 2005, with almost 5,000 new courses opened. However, this exponential growth could not continue, and the market is now self-balancing through a gradual reduction in supply.
Golf course closures are not necessarily a reflection of the sport's popularity or health. In fact, there were fewer course closures in 2023 than any year since 2004, indicating stability in the supply-demand relationship. While closures may never go to zero, they are driven by local competitive pressures and micro-economies, rather than a decline in golf's popularity.
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Golf course closures can be resurrected through renovations, reconstructions, and ownership changes
Golf courses may close for various reasons, including mismanagement, lack of amenities, aging facilities, resistance to change, and the property being repurposed for real estate development. However, closed golf courses can indeed be resurrected through renovations, reconstructions, and ownership changes.
Renovations and reconstructions can play a vital role in resurrecting closed golf courses. The National Golf Foundation reported that in 2022, there was a net decline of about 105 18-hole courses; however, they also noted that the trend of heavy closures was likely "coming to an end." The report further highlighted that since 2006, while there has been a net decline, over 550 new 18-hole equivalent courses (18-HEQ) opened, more than 1,500 reconstructions and major renovations were completed, and 250+ golf courses were brought back to life. Renovations can include enhancing forward tees, improving drainage and irrigation systems, and repairing bunkers and greens. Seeking the right architect for the renovation project is crucial, and golf course owners should focus on the architect's understanding of the facility's history and their ability to provide insights into the project.
Ownership changes can also play a part in resurrecting closed golf courses. Investor-owned clubs and courses may close due to the property being more profitable for alternative uses, such as real estate development. However, new ownership can bring fresh capital investment, programming, and market understanding, potentially reinventing the club to meet the market's demands. For example, the Melreese Golf Course at International Links closed in March 2023 to make way for Miami Freedom Park, a project that includes a soccer stadium, hotel accommodations, retail areas, and a public park. While this specific closure resulted in the development of a new project, it also demonstrates the potential for ownership changes to drive the resurrection of golf courses through the injection of new capital and ideas.
To avoid closure, golf clubs must reinvest and address deferred maintenance. Clubs that reinvest have a better chance of survival. This includes enhancing practice facilities, introducing kids' activities, and incorporating fitness centres, all of which are now considered essential by many modern golfers. Proper market positioning is also critical. Clubs must understand their strengths and weaknesses, compare themselves to other opportunities in the marketplace, and thoroughly comprehend market depth and dynamics. By doing so, clubs can ensure they are competitively positioned and avoid becoming yet another closed golf course.
In conclusion, golf course closures can indeed be resurrected through a combination of renovations, reconstructions, and ownership changes. By investing in enhancements, understanding market demands, and injecting new capital and ideas, closed golf courses can be brought back to life, providing enjoyable golfing experiences for players and benefiting the surrounding communities.
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Frequently asked questions
Golf course closures last year were at their lowest figure in almost two decades, resulting in less than a 1% reduction in the overall U.S. supply. However, it is important to note that closures are inevitable and can be due to various factors such as local competitive pressures, lucrative exit strategies for long-time owners, and demand for land.
Golf course closures can be attributed to several factors, including local competitive pressures, lucrative exit strategies for owners, and demand for land, especially in urban areas seeking additional residential and commercial real estate.
The closure of a golf course does not necessarily reflect a decline in the popularity of the sport. Golf course closures can be influenced by various factors, including local competitive pressures and demand for land. In fact, there has been a net gain in the number of golf facilities and courses since 2022, indicating increased participation and play in recent years.
