Tahoe Island Park Homes for Sale

Tahoe Island Park is an inland neighborhood of about 850 houses in the City of South Lake Tahoe, between the Tahoe Keys to the north and the Y, where Highways 50 and 89 meet, a few blocks to the south. It has no lakefront: the nearest open-lake beach, Pope Beach, is about a mile away in a straight line. Prices sit at the town's middle: in the 12 months to September 27, 2026, 28 homes sold here at a median of $737,000, against $719,000 for all 461 houses sold with a South Lake Tahoe address.

Where Tahoe Island Park is

The county's tract map calls it Tahoe Island Park and its Additions 1 to 4; most people say Tahoe Island, after Tahoe Island Drive, the long street through the middle. On the west side are Anita, Hazel, Butler, Royal, Big Pine and Tahoe Vista, with Harvard, Albert and Peter inside the Tahoe Island Drive loop. On the east side, where Tahoe Keys Boulevard runs north into the Keys, are Michael Drive, Jeffery Street and the state avenues from Arizona to Washington, with Linda Avenue and Council Rock Drive at the south end.

Mt Tallac Village (Lassen, Tuolumne, Whitney and Shasta) sits in the middle of it but is a separate tract, and its homes are sold as Tahoe Keys homes. Tallac Park (Shore, Rainbow, Secret Harbor and Lapham) and Tahoe Tall Acres (Patricia Lane) border it to the south, and Sky Meadows to the east. The listings and sales on this page are Tahoe Island Park's own; none of the neighbors' are counted.

The houses

Nearly every lot holds a single-family house. County records put 85% of them between 1950 and 1979, and half were built by 1970; about 80 have gone up since 2000. The typical house has three bedrooms (two in three do) and about 1,400 square feet. Most lots are 6,100 to 8,700 square feet, a seventh to a fifth of an acre.

Tahoe Valley Elementary (K–5, Lake Tahoe Unified) sits in the middle of the neighborhood at 943 Tahoe Island Drive. Some homes on the north side of Tahoe Island Drive back onto open land and Lake Tallac, the lagoon at the south end of the Tahoe Keys. Most homes pay no HOA dues. Now and then one sells with a boat slip in the Tahoe Keys marina, which carries its own dues: 2269 Washington Avenue was listed with a slip for a boat up to 30 feet when it sold for $895,000 in April 2026.

What homes cost

The 28 sales in the 12 months to September 27, 2026 ran from $399,000 (980 Tahoe Island Drive, 1,152 square feet) to $1,249,000 (2212 Tahoe Vista Drive, a four-bedroom built in 2015). Buyers paid a median 99% of the asking price, and the median home took 48 days from listing to closing.

The median rose from $632,000 in the 12 months before, but that was mostly the mix of homes that sold: the median price per square foot barely moved, from $475 to $487. The table below breaks two years of sales down by size and age.