September 2020
In January 2019, the Wall Street Journal declared in an article that golf course communities were dying. The author noted, “As the sport’s popularity drops, many golf course communities are either shuttering their courses or taking extraordinary measures to survive, such as raising dues or requiring mandatory memberships.
“Fast-forward a year-and-a-half, and golf course communities are no longer a dying breed … far from it thanks to the coronavirus. Yes, the pandemic has completely altered our lives and wreaked havoc on many businesses and industries. However, the golf industry has prospered since the sport is considered one of the safest in terms of social distancing. The luxury home market has also thrived, as many are fleeing metropolitan areas for larger homes in the suburbs with plenty of space for business and pleasure.
Thus, it shouldn’t come as a shock that luxury golf communities’ sales are white hot. Demand is high, yet supply is at unprecedented lows – and that has caused some problems.
According to a recent Forbes.com article, new listings for homes priced above $1 million were down 15.1% year-over-year in May. Demand for multi-million residences that month also outpaced its pre-pandemic trajectory, even after experiencing a considerable slump in April. Searches for upscale homes spiked 7.3% year-over-year in May, compared to a 9.5% drop in April and a 6.2% growth before the virus outbreak.
During the initial stages of the pandemic, luxury golf communities like Desert Highlands began seeing more interest from prospects in the Northeast, Midwest, Pacific Northwest and California. When Arizona became a hotspot for COVID-19 in late June and July, interest in living at Desert Highlands didn’t wane; in fact, it increased and continues to do so.
“We’ve never been busier,” says Joan Sykora, Director of Sales and Member Relations at Desert Highlands. “People are looking to move away from larger cities for quieter and safer communities with plenty of room.”
A recent Harris Poll conducted earlier this spring supports Sykora, as data showed nearly a third of Americans are considering moving to less densely populated areas in the wake of the pandemic. States like Arizona, Texas and Florida are quite alluring because of the low taxes and plenty of space. Golf communities also provide a venue that provides residents grass, outdoor space and recreation within its confines, and large homes that cost a fraction of those in major urban areas.
Luxury real estate analysts and realtors are noticing that residents are searching for specific features within a home and community as a result of the pandemic. Because many more people are working remotely, interest in homes with a large office, or even room for a second office, has increased. Realtors and analysts also note that prospects are demanding fast internet connectivity within a community since they are spending more time at home.
Living in peaceful luxury is attractive, but it’s Desert Highlands’ energetic lifestyle that consistently draws discerning families and active Boomers in equal measure – golfers, tennis enthusiasts, pet lovers, health and wellness enthusiasts. Desert Highlands pioneered the luxury golf club scene in the north Scottsdale area, and has provided its members updated or new amenities over the past couple of years. Among those: new pickleball courts, an updated fitness center and golf course, a dog park, and a kitchen renovation and new gastropub that should be completed by this fall.
Golf course communities dying? The author of that Wall Street Journal article from Jan. 2019 might want a mulligan, or needs to visit Desert Highlands.
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