As Bill points out, this is happening right now at relatively breakneck speed in/around Melbourne with a number of private, "member-owned" golf clubs. The first thing to note is that its the golf CLUB that is relocating , not the golf COURSE. Each case has its own issues/drivers ...however, in a majority of the examples over the past 10 years, my perception is:
-the club membership is aging and/or dwindling for all the other reasons discussed at length here & elsewhere. If not an immediate issue, the wiser committees see the writing on the wall and act
-the club's existing course is located in a suburb that used to be "out of town" but is now in the middle of suburbia and on relatively valuable land
-developers arrive and offer to take the existing club land for redevelopment. In exchange they move the club further out of town onto less valuable land, build them a grand, new, championship course and lovely clubhouse. They maybe even give the club some extra $ to keep them going for a while
-there is lots of angst surrounding the move. Older members don't like "change". Those that live close by, do not like having to drive further. Lots of members love the old course. However, eventually, $ win and the membership votes to move
-during and after the transition phase, lots of existing members join other clubs (avoiding the move) offset by a generally smaller number of new members joining the club for its championship course
-as pointed out already, invariably, the new championship course proves too challenging for its aging and/or new golfer membership and member numbers start dropping again. Member subscriptions have to rise (fewer members to pay the bills) creating a barrier to member recruitment
This process is playing out right now with impending high drama in the outer north east suburbs of Melbourne. 3 private clubs have or are in the process of moving to more or less the same area as an existing struggling "club" with 36 holes (The Heritage). There are about to be 4 clubs and 108 pretty new holes all within a small area. My understanding is that each of those clubs presently has around 300-600 members....in a market where the standard model is 1000 members +/- per club with an 18 hole course. Naturally, the economics at all of those clubs are sucking wind badly. Any smart person sees that mergers and integrations are the way to go. Half the clubs and half the holes and you may have 2 strong entities. Stay like this and all 4 fail. However, "club pride" and stubborn-ness are killing common sense.
Most of this (clubs moving from inner city areas further....and further...and further out of town) is as old as the game, of course. It will be interesting (and sad, probably) to see where the current episode takes us.