27 Jan DEMAND FOR GOLF SHOULD REMAIN STRONG in 2023
The number of golfers per 18 holes is returning to a balance seen decades ago, before the building boom that added over 4,000 courses to the U.S. market. This over saturation, coupled with the burst of the housing bubble and ensuing financial crisis, resulted in an imbalance between golfers and golf courses for much of the past decade or so.
Amid the increase in golfers during the pandemic and the ongoing correction that’s reduced the number of courses, there are indications of a supply/demand equilibrium not seen in years.
As seen below, the number of rounds played per golfer has reach levels not seen since 1990. What’s different today is that construction costs have grown so much that new construction in most cases it not financially feasible, despite the rise in values.
Therefore, considering the above factors, it is our opinion that the golf industry will continue to remain strong since there is little threat of new construction given the rise in costs from chain supply issues. And, work from home/remote will likely remain in place for some time going forward. And, most people will continue with outdoor activities that allow for social distancing, as fallout from COVID-19 remains ongoing.