All the types of multifamily housing play a major role in the real estate market as well as the housing scene in CA. Besides, they offer diverse living options that cater to various lifestyles and budgets. Each multifamily type has its own characteristics, structures, and community dynamics. So, if you are an investor, renter, or a real estate professional, you should know about the nuances of all of these structures. This blog is your comprehensive guide to major types of multifamily properties. Keep reading to learn how they impact the investment and housing dynamics.
What are the Four Types Of Multifamily Housing Structures?
There are several types of multifamily properties. Here is a list of the ones that play a key role in the real estate investment industry as well as the housing dynamics of any region:
- Apartment Buildings
- Condominiums
- Townhouses
- Duplexes and Triplexes
Before discussing the details of these four types, you should know what a multifamily property is. Well, it is a housing classification where multiple residential units exist separately. Multifamily properties are not just great investments. In fact, they have resolved housing problems in many regions in the USA, including California.
“A multifamily property is a multi-dwelling unit where separate housing units exist within a single building.” – Wikipedia
1. Apartment Buildings
Apartment buildings are multi-unit residential structures that house several individual housing units called apartments. The number of units in each building can range from a few to a hundreds. Moreover, these buildings can vary in size, style, and design. Some common types include:
- low-rise complexes
- high-rise towers
Apartment buildings are usually constructed to provide easy access to public transportation, shopping, dining, entertainment options, and other public amenities. Apartment buildings can be owned by a single entity or by a group of investors. Besides, they are usually handled and taken care of by property management companies. The best thing about investors is that they can use it to earn a consistent rental income.
Common Features and Amenities
Apartment buildings have a variety of features and amenities to amp up the living experience. Some of the common ones include:
- On-site laundry facilities
- Fitness centers
- Common areas
- Parking areas
- Security features
- Pet-friendly amenities
These features help attract more and more tenants. As a result, a large number of population is seen now being shifted toward apartments instead of independent units.
Pros and Cons of Living in an Apartment
Pros of Apartment Buildings
Affordability: Apartments are both affordable for renters as well as buyers. How so? Because they usually have lower upfront costs compared to single-family homes. As a result, they are considered more accessible. In the recent years, many people have started considering apartment as a more convenient option as compared to independent units.
- Maintenance-free living: If you are an apartment tenant or an apartment owner, you don’t need to worry about structural or other maintenance issues. After all, property management companies handle maintenance and repairs. As a result, tenants can enjoy a hassle-free lifestyle.
- Community living: Apartment buildings create a community atmosphere and encourages residents to connect with one another. Shared spaces, such as lounges and outdoor areas also facilitate social interactions.
Cons of Apartment Buildings
Limited space: Apartments may have less square footage, living space, and storage compared to single-family homes. This can be a major drawback for larger families or those with extensive belongings.
Noise and privacy concerns: Living in close proximity to neighbors can lead to noise disturbances and reduced privacy. This may not seem a major issue at first. However, it can be quite disrupting when you start experiencing it on a regular basis.
Restrictions: Many apartment buildings have rules regarding pets, renovations, and other aspects of living, which can limit personal freedom. You should have a look at the codes, regulations and terms of a building before moving in.
Lack of outdoor space: Residents may have limited access to private outdoor areas, which can be a disadvantage for those who enjoy gardening or outdoor activities.
2. Condominiums
Did You Know?
The ownership structure of Condos is what that distinguishes them from apartments.
Benefits and Drawbacks of Condo Living
Pros of Condos
Ownership and Investment: Condo owners build equity over time. This makes these housing units a potentially profitable investment compared to renting out apartments.
- Amenities: Many condominiums come with desirable amenities, such as pools, gyms, and communal spaces. This is why they offer a better living experience than single-family homes.
- Maintenance: The HOA usually handles exterior maintenance, structural issues, and landscaping of condos. This allows residents to stay worry-free of frequent repairs and maintenance jobs.
Drawbacks of Condos
- HOA Fees: Condo owners have to pay a monthly fees to HOA. This is an addition to your living expenses, Also, you may face special assessments for unexpected repairs or improvements. This can take your time and become a hassle for you.
- Rules and Regulations: The HOA binds you to follow a specific set of rules that can limit personal freedom. These can include restrictions on renovations, pet ownership, noise levels, etc.
- Less Privacy: Remember that condos are a part of a complex or a building. This means you’ll be living in close proximity to neighbors. Hence, you’ll have to face noise disturbances and reduced privacy compared to single-family homes.
3. Townhouses
Townhouses are multi-story residential units that share one or more walls with adjacent properties. You should know that these multifamily units are usually arranged in a row. Each townhouse has its own entrance, and they usually feature private outdoor spaces, like small yards or patios. Moreover, townhouses also vary in size and architectural style. You can find both modern designs and traditional brick facades in the market. Townhouses also feature functional spaces such as garages, basements, and shared community facilities.
Did You Know?
Townhouses provide more ownership control than apartments and lesser shared amenities and strict regulations.
Advantages and Disadvantages of Townhouse Living
Pros of Townhouses
- Space and Privacy: Townhouses have more living space than apartments, including multiple bedrooms, bathrooms, and outdoor areas. This makes them super suitable for families or those seeking extra room.
- Equity & Ownership: With a townhouse, investors can build equity and have more control over their property compared to many other modes of multifamily investments.
- Lower Maintenance: While homeowners are responsible for their own units, townhouses usually have less maintenance issues than single-family.
Cons of Townhouses
- HOA Fees: Many townhouse communities are associated with HOAs that charge monthly fees for maintenance and amenities. This can also add to overall living costs.
- Limited Outdoor Space: While townhouses may have small yards or patios, they still lack the expansive outdoor areas like those in single-family homes. As a result, you are enclosed in limited space and can’t move around much.
- Noise and Proximity: Just like apartments and condos, when you live in townhouses, you are sharing walls with neighbors. This results in noise disturbances and reduced privacy.
- Rules and Regulations: Townhouse communities may have specific rules to maintain a peaceful community. These can be regarding property modifications, landscaping, and noise, which can limit personal freedom.
Multiplexes
Duplexes and triplexes are multifamily housing structures that consist of two and three separate living units, respectively, within a single building. They provide a lifestyle pretty similar to single-family homes. After all, each unit has a separate entrance, kitchen, and bathroom. Besides, they can serve as both primary residences and investment opportunities. Therefore they appeal to both renters and buyers.
Duplexes | Triplexes |
2 residential units | 3 residential units |
Pros and Cons of Duplex and Triplex Living
Both townhouses and duplexes have come with benefits and disadvantages, here are some of them:
Pros of Multiplexes
- Maintenance Responsibilities: Owners and investors usually have to take care of all the maintenance and repair jobs. This can be quite time and energy consuming for them.
- Limited Outdoor Space: Despite the independence factor, duplexes and triplexes have smaller yards or outdoor areas compared to single-family homes. This is a major drawback for those who enjoy gardening.
- Market Fluctuations: The value of duplexes and triplexes can be influenced by the rental market and the overall real estate market. This is why you can see unstable resale rates throughout the market.
Other Types of Multifamily Properties | |
Housing Type | Description |
Cooperative Housing (Co-ops) | A building owned by a corporation where residents own shares in the corporation rather than individual units. |
Mixed-Use Developments | Buildings that combine residential units with commercial spaces. |
Senior Living Communities | Housing specifically designed for older adults, comes with additional services. |
Student Housing | Housing specifically designed for college or university students. |
Micro-Apartments | Small, efficient living spaces designed for urban dwellers. |
Conclusion
If you have come reading this far, you have got comprehensive information on the four types of multifamily homes. From apartment buildings to duplexes, the above guide covers all of them in detail. This blog is beneficial for both tenants and investors. If you are interested to invest in multifamily property, take professional advisory to make informed decisions. Evelyn Baez has the experience, connection, and expertise to help you close the best multifamily deals. Reach out to her today and get the guidance you need.
