The walkable open spaces and recreational opportunities provided by golf courses make them a key amenity in many residential communities . There are 6 golf facilities in Maine that are connected to residential real estate and have some residential component associated with them , such as villas , lodges or resorts . NGF estimates 857 total residential units in Maine that are part of master-planned golf communities , including 291 units with a prime golf course view . Our research indicated no additional units added to golf residential communities in Maine in 2023 .
IMPACT
The economic impact of golf real estate is derived from the net gain to local tax jurisdictions from value premiums associated with golf course real estate .
The presence of a golf course with direct frontage on , or in immediate proximity to , a residential unit will provide an added value to the residential property known as the “ golf premium ” ( estimated previously by NGF to be 15 %). This golf premium is manifested by the extra value a homeowner can expect to receive on the sale of a housing unit located on a golf course , or within a defined golf community . As this sale is considered a transfer of assets rather than economic output , this is not included in the economic output analysis . However , the enhanced value of golf residential real estate does impact the total amount of property taxes collected by local authorities . NGF estimated the “ golf premium ” associated with these developments to be $ 71.8 million , with a property tax impact of $ 970,000 in net gain for local taxing authorities to be used for education and other local initiatives funded by property tax revenue .
Estimated Impact of Golf Value Premium of Local Property Taxes – Maine 2023
Base
No . of Residential Units in Golf Communities
857 total Units ( 832 SF + 25 TH )
* Source NGF Analysis – 2022 . ** SmartAsset . com / taxes / maine-property-tax-calculator ). *** From Zillow records of Maine home sales .
$ 9.1M
Maine Golf Real Estate
$ 8.1M
Golf Home Construction *
$. 97M
Net Gain on Local Property Tax from Golf Premium ***
Avg . $ Value Residential Units in Golf Communities
SF $ 571,600 TH $ 115,00 ***
Total ($ Millions )
$ 478.5
“ Golf Premium ” 15 %* Total Golf Premium $ 71.8
Maine Effective Property Tax Rate
0.00134 **
Net Gain for Local Tax Jurisdictions $ 970,000
APPROACH
What is Measured
New golf home construction generates significant economic activity and impact during the period homes are constructed . For this segment , NGF measures expenditures related to new golf home construction , as well as economic activity associated with the property tax assessment valuation of golf homes and the premium associated with these homes . The “ golf premium ” is the extra amount of property taxes collected by local authorities .
How it ’ s Measured
NGF conducted direct research in an attempt to identify golf communities that were active in building new residential units and / or undertaking phases of development at existing golf communities . NGF then reviewed aerial photographs and contacted real estate developers , builders and real estate agents to identify the number of new homes under construction in 2023 and establish an average construction cost .
The calculation of the golf premium impact on local property taxes involves two parts : ( 1 ) the “ premium ” associated with proximity to a golf course was estimated based on previous NGF research on golf-residential communities at 15 % premium ; and ( 2 ) Identified the total inventory of residential units ( by type ) inside golf communities in the State multiplied by the average sale value ( by type ) of these units and then applying the 15 % golf premium and the estimated 1.34 % statewide effective property tax to market value estimate . The calculation is summarized in the table to the right .
The Contributions of Golf to the State of Maine | 2023 Impact Report 31