| The state line that divides Lake Tahoe between California and Nevada also splits the real estate market in two different parts.
Lake Tahoe is the highest and largest Alpine lake in the USA which is surrounded by mountains. Nevada residents are closer to the casinos, which are legal on that side of the border, but the California residents have better access to the ski resorts.
But on both sides of Lake Tahoe, at least 90% of home buyers live outside the area and are buying their second or third homes.
The reason they choose one side or the other depends on the taxes: Nevada has no state income tax, and the property taxes are a little bit lower. That's, in part, why price appreciation has been stronger on the Nevada side.
Home sales, though, are down on both sides, and Nevada has seen the sharper decline. In October, the median home price on the Nevada side was roughly $735,000, up nearly 12% from the year before. But sales plunged 47%.
On the other hand, on the California side, which accounts for about two-thirds of the area's population, the median price was up 5%, to about $701,800, though home sales were off about 6%.
While prices are a bit lower on the California side, they're still higher than what most year-round residents can afford. The median household income is about $34,000, so a lot of locals work more than one job. |
