Crystal Bay, a small Lake Tahoe community straddling the California–Nevada border, ranks among the most expensive waterfront markets in the United States, with a median listing price of $14.9 million in December 2025, according to a Realtor.com analysis.

The enclave, home to roughly 200 properties, is known for its steep-slope privacy, elite lakefront residences, and midcentury glamour. The area was a 1960s retreat for entertainer Frank Sinatra, who once owned the Cal Neva resort and casino. Today, the town center consists of two casinos and a post office, juxtaposed with multimillion-dollar homes overlooking the lake.

Nevada’s tax climate attracts buyers. The state has no income, estate, or inheritance taxes, and property-tax rates on the Nevada side of Lake Tahoe are generally lower than California’s. The proximity to Incline Village, four miles northeast, offers residents access to hospitals, grocery stores, and the Diamond Peak Ski Resort, while nearby Kings Beach in California provides a more rustic environment.

Crystal Bay appeals to high-earners, particularly buyers from California’s Bay Area seeking Nevada residency ahead of major financial events. Most homes are owner-occupied rather than short-term rentals, with single-family residences dominating the market. Properties along Gonowabie Road, offering direct rocky-shoreline access and private docks, are among the most coveted. Homes above Highway 28 often have lake views but are not directly on the shoreline.

A revitalization of the area’s commercial core is underway. The Cal Neva resort, closed since 2013, is being converted into the Lake Tahoe Proper Resort & Casino, scheduled to open in 2027. The Tahoe Biltmore hotel and casino, which closed in 2022, remains vacant.

Insurance for properties in the area is shaped by wildfire and flooding risks. Homeowners are advised to combine physical mitigation, such as maintaining defensible space, with comprehensive coverage. Basic fire insurance can exclude flooding, requiring separate policies.

Limited inventory drives a competitive market. Many properties sell before appearing on public listings, making off-market networks essential for prospective buyers.

Notable homes include a 10,000-square-foot property on Gonowabie Road listed at $45 million, featuring a glass elevator, five-story floating staircase, spa, wellness center, heated driveway, pier, boat lift, and full-home generator. Another property on Northlake Circle, listed at $15.9 million, spans 4,218 square feet in a gated community with multiple decks, lake access, and private buoys.