South Lake Tahoe HousingGauge — August 31, 2026 | YELLOW 50

Welcome to the South Lake Tahoe HousingGauge, your weekly local market report for the week of August 31, 2026.

Here is the headline. South Lake Tahoe's HousingGauge score is 50 out of 100, which puts the market in the YELLOW zone. Conditions are broadly stable, but prices are stretched relative to incomes.

Three developments stand out this week.

First: Inventory down 29.4% year over year. 154 homes are listed for sale, equal to 4.1 months of supply.

Second: Median price up 10.8% from a year ago. The median sale price is $685,000; adjusted for inflation, prices are 7.2% higher than a year ago.

Third: Rents up 4.8% year over year. Typical rent is $2,441 a month, for a gross rental yield of 4.3%.

Now, what is behind the score?

Mortgage Conditions scores 31 out of 100. The 30-year fixed rate averages 6.66%, up 0.68 percentage points over six months. Financing remains expensive, limiting affordability for leveraged buyers.

Supply & Buyer Leverage scores 49 out of 100. Inventory is 29.4% lower than a year ago (154 active listings), with 4.1 months of supply. Homes take a median 50 days to sell at 98.0% of list price, and 26.8% of listings have had a price cut. Negotiating leverage is fairly balanced between buyers and sellers.

Monetary Conditions scores 59 out of 100. The real policy rate is 1.23%, 0.22 points above the estimated neutral rate (r-star) of 1.01% — a near neutral stance. The fed funds rate is unchanged over six months.

Demand Trend scores 88 out of 100. Pending sales are 10.2% higher than a year ago and closed sales are 12.7% higher. Days on market are 15.3% shorter than a year ago. Buyer demand is firming.

Valuation & Affordability scores 11 out of 100. The median home costs 8.4 times the median household income. Principal and interest on a typical purchase would take 51.5% of that income at current rates. Inflation-adjusted prices are 7.2% higher than a year ago. Prices are stretched relative to local incomes.

Rental Economics scores 54 out of 100. A year of median rent equals 4.3% of the median price (a price-to-rent ratio of 23.4). Rents are up 4.8% year over year. Rental economics are middling.

The score is unchanged from last week's report. Over 13 weeks the score is unchanged at 50. The largest contributors were Demand Trend (+11.9 points) and Supply & Buyer Leverage (−5.6 points).

So what would move South Lake Tahoe into the green? It is 20 points away, which would take a broad shift in conditions. Even these changes together would add only about 18 points: 30-year mortgage rate falls below 5.50% (now 6.66%); the Fed cuts more than 0.75 pts over six months (now −0.01 pts); policy gap (real policy rate minus r-star) narrows below −0.95 pts (now +0.22 pts); months of supply rises above 6.4 months (now 4.1 months); mortgage rates fall more than 0.50 pts over three months (now +0.13 pts); and pending sales grow more than 15.0% year over year (now +10.2%).

And what could make conditions worse? Watch for these together: 30-year mortgage rate rises above 7.00% (now 6.66%); pending sales growth slows below 5.5% year over year (now +10.2%); the Fed raises rates more than 0.25 pts over six months (now −0.01 pts); policy gap (real policy rate minus r-star) widens above +0.55 pts (now +0.22 pts); and months of supply falls below 3.4 months (now 4.1 months).

That is the South Lake Tahoe HousingGauge for this week. The HousingGauge score describes market conditions. It is not a recommendation to buy or sell, and it is not individualized financial advice. For charts, sources and the full methodology, visit housinggauge.com. Thanks for listening.