New Recreational Projects Approved
Lake Tahoe is pursuing a careful balance between the benefits and challenges brought about by the growth in tourism.
Placer County, Truckee and South Lake Tahoe have recently implemented restrictions on short term rentals. These initiatives began because of nuisance issues and how Covid drove a surge of tourists to Lake Tahoe. However, the situation has now been catapulted by the inability of locals to find long term housing.
At the same time, the growth in tourism to the Lake Tahoe area has provided many benefits to the area. The Transient Occupant Tax (TOT) and other lodging taxes fund the development of community parks and amenities. The funds raised are not only important for the local economy, they improve the quality of life for everyone.
New Martis Valley Trails
Recently, the Capital Projects Advisory Committee evaluated grants requests from the $4.5 million raised in TOT funding. Some of the projects approved for funding include the Resort Triangle trail, Martis Valley Trails and Scenic Overlook.
A 9-mile trail, called the Martis Valley Trail, will serve as a way of connecting Northstar Village to North Lake Tahoe and Truckee. Awarded $1 million to begin work on this project. $900,000 was provided to develop the Resort Triangle trail project. This project will provide alternative transportation and other recreational options connecting North Lake Tahoe, ski villages and Truckee.
New Tahoe Vista Project
Other projects that have received funding include the Tahoe Vista Recreation Area Marina Trail and Scenic Overlook Project. This will provide the Tahoe Vista Recreation Area with a new lake access trail and scenic overlook.
They have received $214,000 in funding to make improvements and upgrade the existing trails.
Van Norden Meadow Restoration
The Van Norden Meadow on Donner Summit received funding for the Meadow Restoration and Recreation project. This project will restore floodplains and natural streams to the area.
Set to begin this summer, funding will allow for the development of recreational areas. Originally purchased as part of the 2012 Royal Gorge Acquisition, 3,000 acres passed from the land trust to the Forest Service.
The funds will upgrade a trail existing across the meadow, and add interpretive signage. The restored area will allow fishing, bird watching, and provide a connector trail to the north and south side of the meadow.
Affordability in Lake Tahoe
The Transient Occupancy Tax varies by region, but it does provide funding that would otherwise not be available to the region. It is estimated that almost 80% of homes in North Lake Tahoe are second homes. With many locals challenged by the lack of available housing, many homes sit empty or are used for vacation rentals.
According to an article in the SFGate, a two-person household must earn 425% of the area median income to qualify for a median priced home.
In 2020, the median price for a home in North Lake Tahoe was $600K. November 2021 data from the Tahoe Sierra Board of Realtors shows this number to be $1.175, a 178% increase.
Real estate values in Lake Tahoe have soared and affordability has moved beyond the reach of our local service providers. This includes those who work in tourism, restaurant staff and more importantly, teachers and healthcare providers.
The area is seeking to find a happy medium between restrictions that will ensure housing for locals, and the economical and community benefits of tourist revenue.
Contact us today to learn more about local ordinances and regulations that affect the local real estate market. Whether you are looking to buy or sell your home, we’d love to show you why we are Lake Tahoe's premier realtors.