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12 popular types of houses for buyers and renters

Yahoo Personal Finance· Getty Images
E. Napoletano
·Contributor
Updated 10 min read

Whether renting or looking to buy, the real estate market gives you plenty of house types to call home. From the ease of apartments and the minimalist styles of tiny homes to condos and single-family homes in every imaginable style, your local geography plays host to a dazzling array of types of homes.

By understanding these 12 different home types, you can gain a new appreciation for what your current or future real estate market has to offer. And from there, you can find your ideal match among all the different types of houses in your fair city.

Learn more: Should you rent or buy a home? How to decide.

A single-family home is designed for one family to live in and is detached from other residences on the sides, above, and below. They often have front and back yards and a place to park a car or two, and — depending on the part of the country you live in — may even have a front porch and back patio. These homes have everything all to themselves, including air conditioners and heaters, utility meters, and additional storage spaces like attics and basements.

Here are two fun facts about single-family homes. First, they’re the most popular type of home purchased in the U.S. Next, a home could still be considered a single-family home even if it’s built to house up to four families. Any bigger than that, it becomes the next type of home on our list.

Read more: Best mortgage lenders for first-time home buyers

A multifamily home is a single structure designed for five or more families. These types of homes can come in various shapes and sizes, from a single-family home with a permitted basement apartment added to a multi-level apartment building with several separate units. Some additional popular types of multifamily homes include condos, duplexes, and townhomes.

A trait that all multifamily homes share is … sharing. These homes share walls, ceilings, floors, and, sometimes, all three. Multifamily homes are popular among investors since they can either rent out the entire building or live in one unit and rent out the others. Either way, owners can potentially generate cash flow.

Dig deeper: How to decide between a single-family vs. multifamily home

An apartment is a rental unit in a building with multiple other rental housing units. The key characteristic that separates an apartment from a condo is that you can buy a condo but only rent an apartment.

If you live in an apartment, you’ll likely share some common amenities with your neighbors. While availability varies by property, some common shared features include pools, gyms, and courtyards. Some upscale apartments may have snazzier shared amenities like business centers, rooftop decks, and group fitness classes.

A condominium, colloquially known as a condo, slides right in between a single-family home and an apartment. Here’s how houses and condos compare: Like a single-family home, you can buy and sell a condo and customize it to your heart’s content — or your HOA’s content. However, like an apartment, condos have shared structural features, plus common areas and amenities available to all owners.

Unlike apartments, condos typically charge an association fee paid to a third party responsible for the property’s upkeep. You pay this fee monthly, often right along with your mortgage, and the designated property manager uses the fees to pay for landscaping, roof and building maintenance, and more.

Dig deeper: Should you buy a home with a homeowners’ association?

While they might look like condos on the outside, co-ops (short for “cooperatives”) are multifamily buildings collectively owned by all residents. Instead of buying a single unit in the building, co-op owners buy shares of a corporation that owns the building, the land, and the common areas. Through the co-op agreement, owners have the right to occupy a particular unit in the structure and pay monthly co-op fees that are pooled and used to maintain the property.

To buy into a co-op, you must clear two important hurdles: the co-op board’s approval and financing. Boards ensure potential buyers will fit within the community and have the means to be responsible owners. Co-op financing could prove the more formidable obstacle, as not all lenders will issue mortgages for these homes.

If you love multi-level living, a townhouse could be for you. Townhomes have two or more stories and at least one common wall with another townhome. They might be called row homes if multiple units are built side-by-side.

Townhomes offer several attractive features. First, they often have low-maintenance private yards or outdoor living spaces with common spaces maintained by an association. Next, they can have fewer shared walls than a co-op, condo, or apartment, which could reduce “neighbor noise.” Finally, townhomes can give you the single-family home feel with lower maintenance and a potentially lower price tag. Keep an eye out for association fees that could add to monthly costs.

Fans of the buddy system might find that a duplex checks all the right boxes. When you have two housing units on one plot of land, that’s a duplex. Duplexes can be attached by a common structural feature like a wall or ceiling or completely detached from other units.

The central selling point for a duplex is similar to that of a townhome: fewer shared surfaces than a condo or apartment. If you want to buy a duplex, you’ll buy both units. Sadly, you can’t buy half a duplex. You can then rent both units or live in one and rent the other. Rental income can help you pay down your mortgage faster and generate cash flow. And whether you’re buying or looking to rent a duplex, you might also find that the floor plans are more generous than with condos and apartments.

Instead of that “new car” smell, get ready for a new home smell when you buy a new construction home. These homes are sold directly to buyers from builders — often before they’re even built — and come in two varieties: production and custom.

You’ve probably seen production homes being built in a new neighborhood in your area. Builders offer various floor plans, finishes, and features that buyers can customize. Custom homes are designed exclusively for buyers; the sky (and price) is the limit with features. With so many ways to tailor your home to your wants and needs, you’ll likely enjoy a fresh place to call home and (hopefully) fewer surprises than you’d find in an older home.

Learn more: How does a construction loan work?

Manufactured homes are the mobile homes of the past, but with several modern glow-ups that potentially boost their appeal. They’re manufactured in a climate-controlled construction facility where sections are attached to a steel chassis and transported to their lot. Manufactured homes are built in sections that harken to their name: single-wide, double-wide, and triple-wide.

While these homes generally cost less than single-family homes, there could be other ownership costs to consider. You’ll either need to own or lease the lot; if you own your lot, you’ll also need to have it fitted with utility hookups, which come with a price tag.

Both modular and manufactured homes are built in factories and then shipped to their homesites, but that’s generally where the similarities end. Modular homes come in an astounding number of floor plans and designs. After deciding upon your home’s floor plan and features, it’s assembled in modules (hence the name). After the modules arrive at your lot, a construction crew assembles them and connects the utilities. Ultimately, you’re the proud owner of a home that looks just like a new construction home — often, at a considerable cost savings.

Among the different types of houses, tiny homes ring in at the smallest in stature. These homes are typically less than 400 square feet, excluding any loft space. They’re typically portable, so they might be on a wheeled chassis. Or, you could opt to build a pad and attach the home to a permanent foundation. Whichever choice you make, tiny homes are all about low costs and big living.

With costs coming in between $20,000 and $50,000, these types of homes can be much more affordable than others on our list. But here’s the trick: Your tiny house needs essentials like running water and electricity. You’ll either need to access those necessities through hookups or build in some sustainable energy features like solar power and rainwater harvesting. If you’re not paying cash, financing a tiny home requires some creativity. A tiny house typically doesn’t qualify for a traditional mortgage, so you may need a personal or RV loan instead.

Dig deeper: Best personal loans

While generally not as small as a tiny home, accessory dwelling units are living spaces built on single-family home sites. ADUs could be detached units or converted attics or basements. Either way, they’re generally required to have separate entrances from the main home, and the owner usually needs to live in either the ADU or the main house.

Building an ADU or buying a home with an existing ADU can be especially attractive for a few reasons. First, ADUs are ready-made rental properties that can generate income. Next, they could be ideal spaces that give family members privacy while being close to loved ones. Finally, adding an ADU to your property could significantly boost its value.

Deciding which type of home to buy depends on several factors, including budget, preference, and current market conditions. There’s no one-size-fits-all house, but thankfully, there doesn’t need to be. Every city and town has many different types; a few factors can help you whittle down your choices.

  • Budget. Whether renting or buying, a budget helps ensure that your monthly housing costs don’t eat into the money you need to pay other essential expenses. Use Yahoo Finance’s home affordability calculator to find out how much house you can comfortably afford on your budget.

  • Preference. Once you have a budget, consider how different home types in your price range fit your needs. A list of must-haves and would-like-to-haves can help you quickly identify home types that best suit your family and lifestyle.

  • Real estate market conditions. A real estate agent in your area can help you understand pricing trends where you live and which types of homes might be better buys in the current market.

And here’s a curveball: It’s important to stay open to options because it may prove a solid strategy to buy a home type you like — especially if you can’t yet afford the type of home you love. Buying a home usually builds equity over the long term, and that’s equity you can use to upgrade to the home of your dreams at a later date.

Dig deeper: Is it a good time to buy a house?

Several different types of houses are common in the U.S. The types range from single-family homes to buildings of multiple units designed for sale or rent. The types of houses you’ll find can vary depending on where you live. For instance, apartments would be more common in a large, densely-populated city like New York or Los Angeles, whereas single-family homes and apartments may be more common elsewhere.

According to the National Association of Realtors, single-family, detached homes were the most popular type of house bought in the U.S. in 2023. Townhomes and rowhomes were the second most popular type of home purchased.

The type of house you can afford will depend mainly on your income, down payment, and credit history. These three factors will determine the maximum mortgage amount you can qualify for, including your monthly payment — which doesn’t just cover the price of your home. Your mortgage payment may include other costs, such as property taxes, homeowners insurance, and private mortgage insurance (PMI).

This article was edited by Laura Grace Tarpley