Massachusetts golf course building is slowing dramatically following a boom in development and construction in the late 1990s.
Whereas at the close of the 1990s and into the 2000s there were believed to be as many as 34 public and private golf courses teed up, new construction has ground to a standstill.
"The number of courses switching from proposed to under construction has fallen off precipitously," said Thomas Landry, president of the Massachusetts Golf Association. One reason, Landry said: Developers overbuilt in the last growth spurt. "There's an abundance of inventory on the market," Landry said. "If any developers are thinking of building a golf course, they're delaying because of the inventory,
As a result of the course-building growth spurt, some area golf courses' membership ranks have room to grow.
Kirk Hanefeld, director of golf for the International Golf Club Tiger Course in Bolton, said his 350-member club, with a $65,000 individual initiation fee, is only at 60 percent capacity.
Another reason future building may take a while to rebound is the economy, which remains soft.
"In 2000, the economy was humming, people had all kinds of discretionary income" Hane
feld said. "When the economy turns the other way, the last thing anyone wants to do is fork over money for an initiation fee.
Besides the economy, there is a limit to the number of people who will take up golf, said Jody Shaw, general manager at Balleymeade Country Club in North Falmouth.
"Ultimately the number of new people who play has not kept up," Shaw said.
Yet, supply-and-demand rules have not brought down the price of club memberships, Landry said. Initiation fees at private clubs remain at between $35,000 and $125,000. Economic rules, though, will apply to whether developers get back into the golf-course building game.
Source: The Boston Business Journal