The population grew to 1,681 people as of the 2010 Census, making the community one of the state's ten fastest growing communities in terms of percentage, with an increase of 35% from the 2000 Census, and an increase of 160% from 1990.

[4] The Village benefited from the real estate boom of the late 1990s and early 2000s.

In 2007 a new Village Hall was built which provides over 2,000 square feet (190 m2) of meeting and office space.

In terms of land area, Lake Isabella ranks as the state's second largest village.

As of the 2000 Census Lake Isabella was the 71st largest village in the state in terms of population.

As of 2011 the tax base for the community had grown to over $70 million, making it the 17th largest for all of Michigan's villages.

22.5% of all households were made up of individuals, and 9.1% had someone living alone who was 65 years of age or older.

19.5% of all households were made up of individuals, and 6.6% had someone living alone who was 65 years of age or older.