Three of the 11 golf courses San Diego owns are run in-house — Torrey Pines, Mission Bay and Balboa Park. Private operators lease and manage the remaining eight golf courses. Four of those leases have expired without being renegotiated.
San Diego’s privately managed golf courses generated $3.7 million for the city’s budget last year. The total revenue earned by the operators leasing them was $34 million, according to a February 2026 city audit.
Why are these numbers relevant? Because the city seems to be leaving money on the table. The total area covered by the city’s leased golf courses spans roughly 800 acres. This is the starting point of a pressing dispute: should San Diego’s golf courses be redeveloped into housing?
With renters required to pay 2.8 times the minimum wage to afford an average rent, San Diego’s housing crisis can no longer be postponed. But, at the same time, the city has a budget shortfall of over $110 million. Renewing the golf course leases under better terms could partly cover that gap.
The debate is by no means simple, and this is not just a local issue. Statewide, the same problem puts public golf courses in the spotlight, with some arguing that these green spaces should be kept while others believe they should be repurposed into housing. The matter becomes even more complex when the value golf brings to local communities comes into play.
In California, golf is a $15.5 billion industry, according to the California Alliance for Golf. Nationwide, California achieves one of the highest golf-related revenues from its over 150 private golf clubs. A part of that money automatically goes into local budgets.
Beyond this immediate benefit, it’s worth considering that golf also generates income for a wide range of businesses spanning hotels, restaurants and transportation. All the while, the state’s 960 golf courses only use around 1% of the potable water to stay green, far less than many might assume while advocating for golf course redevelopment.
San Diego undoubtedly needs more houses for its residents, but the same can be said about green space. Golf courses offer shade, landscape diversity, exercise, socialization and leisure opportunities. All these aspects should be carefully pondered.
There is already an example of how golf course redevelopment could look in order to please both advocates and opponents — the Carmel Mountain Ranch golf course. This former private course that closed in 2018 was approved for repurposing in 2021 in order to offer 1,200 multifamily residential dwelling units, with 15% intended for low-income occupants.
Besides this, the redevelopment plan includes 6,000 square feet of community commercial amenities, and over 100 acres of open space for recreational amenities. The Carmel Mountain Ranch golf course is, by no means, a guaranteed recipe for success. However, it does prove that new housing and green space can coexist.
This is the kind of middle-ground outcome San Diego officials should consider as they address the issue of unleased golf courses. Seeking the highest possible revenue from these assets appears to be the most practical course of action given the size of the budget gap. However, the discussion shouldn’t only revolve around the possible gain but also include the potential loss.
By converting those courses into real estate, the city loses precious green space, which is becoming increasingly scarce. Furthermore, it also gives up the recreational value of golf courses and the financial advantages this pastime could bring to the city and the business community.
The financial aspect is indeed essential when considering the fate of San Diego’s public golf courses. As numbers show, more than 90% of the money generated from the eight courses the city owns doesn’t support the community. This is the pressing issue that should get fixed first. Resolving the leases that are still not negotiated and making the most of them is a priority.
With better lease terms and more scrutiny in managing the existing public golf courses, San Diego could get a better share of the $34 million they produce. So, the debate could be reframed around maintaining what already exists and maximizing the profits, rather than redeveloping.
Before deciding the fate of its golf courses, the city of San Diego should first explore more ways of maximizing their profits. Moreover, any redevelopment decision should also involve San Diego’s citizens. They have the right to know what is gained and lost before the green fairways are turned into residential units.
Sean Petersen is a passionate golf player and the founder of Golf Trip Junkie, a platform that helps plan custom golf vacations.
