Palmetto Bay's housing stock is dominated by single-family homes, many built in the mid-20th century and set on larger, maturely landscaped lots. Streets are typically quiet and tree-lined, and the village's older homes have increasingly been joined by custom rebuilds and renovations on established parcels. Condominiums and townhomes appear in a smaller number, particularly near the commercial corridors, while waterfront and canal-front properties along Biscayne Bay represent the community's most distinctive addresses. The Palmetto Bay Village Center, an 80-acre office campus on Old Cutler Road with a nature preserve and bay views, adds a commercial anchor. Overall, the housing stock skews toward established, spacious suburban living rather than dense new development.

Palmetto Bay formed from two earlier communities, Cutler and East Perrine, and those historic identities still shape the village's geography. The Cutler area, associated with the Deering Estate and the older bayfront along Old Cutler Road, retains much of the area's pioneer and estate heritage. East Perrine, to the east along US 1, grew around early farming and the railroad. Modern Palmetto Bay is also commonly described in terms of its subdivisions and residential pockets, from bayfront and canal-front streets to inland, tree-shaded blocks. Rather than a single downtown, the village is organized around its parks, schools, and the Old Cutler Road and US 1 corridors.

Life in Palmetto Bay revolves around the outdoors and community institutions. The 'Village of Parks' designation reflects a system of neighborhood parks, playgrounds, and green spaces that residents use year-round. The Deering Estate hosts museum tours, nature walks, arts programming, and nighttime kayak outings on Biscayne Bay, making it the community's cultural and ecological hub. Family-oriented events, recreational programs, and active civic life give the village a close-knit feel unusual for a Miami-Dade suburb. Dining and shopping are distributed along US 1 and in nearby Kendall, while the village itself retains a low-key, residential atmosphere.

Palmetto Bay is served by Miami-Dade County Public Schools, one of the largest districts in the nation. Local schools include Palmetto Elementary School, Dr. Henry E. Perrine Academy of the Arts, and Miami Palmetto Senior High School, a well-regarded high school whose campus serves much of the surrounding area. The village also hosts a number of private and charter options, including Palmetto Bay Academy and Sunrise School of Miami. Families frequently cite the quality and proximity of local schools as a central reason for settling in the village.

Palmetto Bay is framed by two north-south arteries: US 1 (South Dixie Highway), the area's main commercial and commuter corridor, and Old Cutler Road, a scenic, canopy-lined route that follows the bay. The village operates a local circulator bus that connects to the Dadeland South Metrorail station, the southern terminus of the Metrorail Green Line, and a Palmetto Bay Park-N-Ride provides a link to county transit. This places downtown Miami and the Brickell area within reach by a combination of bus and rail. For air travel, Miami International Airport is accessible via the Palmetto Expressway and the county road network.

The Deering Estate is Palmetto Bay's premier outdoor and cultural destination: a 444-acre coastal preserve with eight ecosystems, museum tours, art exhibits, and kayaking on Biscayne Bay. The village's 'Village of Parks' network provides playgrounds, sports fields, and green space throughout its neighborhoods, supporting youth sports and community events. Residents also use the bay and the village's canal system for boating, paddling, and fishing. Nearby regional attractions, including Biscayne National Park and the wider South Dade park system, extend the outdoor options well beyond the village's own borders.