Second homes: The new, improved South Lake Tahoe

— -- After years of playing second fiddle to the tonier north shore, South Lake Tahoe is poised for a renaissance. The area has always been less expensive: Starting prices for lakefront homes are a fraction of those in north shore communities. But after extensive improvements, the south offers more than just value.

Offering a combination of winter skiing, waterfront views and summer recreation, Lake Tahoe is one of the few places requiring no seasonal compromise. The main draw is year-round outdoor recreation, including skiing, biking and water sports. Hundreds of miles of trails surround the lake, the nation's second-deepest, and 40 golf courses lie within 90 minutes.

Once known for tacky 2-for-1 T-shirt shops, the South shore is reinventing itself, says realtor Elaine Castelyn of Exclusively Lake Tahoe. The change started when Heavenly, California's largest ski resort, poured money into hotels, lifts, trails, a new base village and a gondola into South Lake Tahoe, which encompasses South Lake Tahoe, Calif., and Stateline, Nev.

More recently, the corridor of souvenir shops and old motels has been razed to make way for a 12-acre lakefront development. With large casino hotels in Stateline, the south end offers the same lake with better skiing access and the energy of a casino town — at lower prices.

"What makes it so special is the contrast. It's where the action is in the Tahoe basin, but still offers lakefront serenity," Castelyn says.

The Nevada side of the south shore commands a premium, because there are no state income or property taxes. It also has larger lots and lower density. An entry-level home on the California side "is $200,000, and the same home would be $350,000 in Nevada," Castelyn says. "On the California side, $190,000 will get you a condo."

A look at three South Lake Tahoe neighborhoods

• Tahoe Keys, Calif.: Devoted to lakefront living, the 740-acre private community has a marina and beaches, plus 11 miles of inland waterways. It also offers second-home owners the most bang for the buck: "$200,000 will get you a condo, $600,000 will get you a three-bedroom lakefront home with private dock," says Realtor Elaine Castelyn. (tahoekeyspoa.org)