Bay Harbor Islands has one of South Florida's more distinctive housing structures, shaped by the zoning laid out by founder Shepard Broad. The West Island is reserved for single-family homes only, creating a low-rise, residential streetscape, while the East Island is developed with multi-family buildings alongside the town's business district and civic buildings. The overall stock is boutique in scale, much of it waterfront or water-adjacent, with no large-scale high-rise corridors. This two-island division gives the town a clear contrast between single-family neighborhoods and condo-and-apartment living within a compact footprint.

Bay Harbor Islands is divided into two islands with deliberately different characters. The West Island is zoned exclusively for single-family homes, producing quiet, low-rise residential streets. The East Island carries the town's multi-family housing and its civic core, including the business district, Town Hall, police headquarters, and the Ruth K. Broad Bay Harbor K-8 Center. The Broad Causeway connects both islands to the mainland, and the town sits directly east of Bal Harbour with Indian Creek Island to the south, placing it among some of the region's most established waterfront communities.

Bay Harbor Islands offers an intimate, laid-back island lifestyle within one of South Florida's most connected waterfront settings. The town is deliberately small and residential, with walkable streets, a compact business district, and a family-friendly, low-key atmosphere. Residents are minutes from the beaches of Surfside and Miami Beach, the high-end retail of Bal Harbour Shops, and the dining and culture of greater Miami, yet the islands themselves remain quiet and neighborly. Its size, zoning, and waterfront setting give daily life a distinctive, close-knit character rare in the Miami metro.

Bay Harbor Islands is served by Miami-Dade County Public Schools, one of the largest districts in the United States. The town is home to the Ruth K. Broad Bay Harbor K-8 Center, located on the East Island, which serves students through eighth grade. Area students typically continue to Dr. Michael M. Krop Senior High School and have access to the district's magnet, charter, and private options across the region. Having a neighborhood school within the town itself is a notable part of Bay Harbor Islands' family appeal.

Bay Harbor Islands is connected to the mainland by the Broad Causeway, a toll roadway whose drawbridge crosses the Intracoastal Waterway. The causeway links the islands to Bal Harbour and points west, while Miami Beach is about 15 minutes away by car. Miami-Dade Metrobus routes serve the surrounding Bal Harbour and Surfside corridor, connecting to the wider regional transit network. The town's position north of Miami Beach also places it within convenient reach of Aventura and central Miami, with easy access to South Florida's major highways.

Recreation in Bay Harbor Islands centers on its waterfront setting and a handful of small parks and tot lots scattered across the two islands, including a children's play area near the Broad Causeway. The town's parks and recreation committee guides its modest park system and leisure programs. For broader recreation, residents are minutes from the beaches of Surfside and Miami Beach, the green spaces of Bal Harbour, and the marinas and water access of Biscayne Bay, making boating, beachgoing, and waterfront recreation central to local life.