“Single-family home” is one of the phrases used in the real estate industry that industry professionals understand but can be easily misunderstood by the public at large.
So, what exactly is a single-family home?
What is the Difference Between a Single-Family Home and a Multifamily Home?
While there is no absolute definition, most agents consider a single-family home to be a structure that sits on its own land that provides accommodations for a family.
The U.S. government has a more formal definition of a single-family home, as a self-contained home separated from other properties by a ground-to-roof wall. Therefore, by this definition, detached, semi-detached, and terraced houses all qualify as single-family homes.
The difference between a single-family home and a multifamily home can be quite subtle since it’s possible for the same building to serve as both during the life of the property.
Large townhouses, for instance, were often originally built as single-family dwellings. Over time, however, demand for housing in some areas went up, making it more economical to break these large homes into several small units, all occupied by different families, resulting in a single-family home becoming a multifamily home.
Single-Family Homes Pros and Cons
There are numerous benefits to single-family homes. These include:
- Greater privacy. In multifamily dwellings, residents are often only a few feet away from their fellow occupants. Privacy can be an issue. In single-family homes, though, residents are more spread out. They often do not share interior walls, and detached properties are completely independent of any other homes.
- More space. Most single-family homes have additional storage space, making them roomier than an apartment or condo. Detached houses often have garages and sheds.
- Greater ability to customize. Homeowners often have greater scope to customize the interior and exterior of single-family homes compared to multifamily homes.
So, what are the downsides of single-family homes?
- Higher costs. Because occupants of multifamily homes share interior walls and possibility facilities, costs tend to be lower. Single-family homeowners have to bear all of the costs themselves and do not share the costs with other residents.
- More responsibility. Most multifamily homes receive regular upkeep services from a third-party, usually the landowner. Single-family homes, however, do not. It’s the job of the owner to manage all the maintenance and repairs.
- Lower income potential. A house isn’t just a home; it’s also an asset. However, there’s less potential to generate income with a single-family home. In some cases, owners of multifamily homes can live in one of the units while renting out one of the units to generate income.
Who Stands to Benefit Most from Single-Family Homes?
Homebuyers purchase a home based on lifestyle choices and their situation. While single-family homes may be ideal for some people, they’re not the best choice for everyone.
When it comes to buying a home, there is no right or wrong answer. The buyer should base their final decision on a range of factors.
Single-family homes work well for “families.” They are often chosen by people who need multiple bedrooms for children, as well as plenty of storage space for belongings. A lot of single-family homes come with yard space, providing room for kids to play and exercise. However, multifamily homes like apartments and condos often do not offer private outdoor space for each family. Furthermore, single-family homes also tend to benefit families with more expendable income to take care of maintenance and repairs.
Personal preferences come into the equation too. People who enjoy their privacy often choose a single-family home versus a multifamily home. And, of course, there are varying degrees of privacy afforded by different types of single-family homes.
Sometimes, seniors and empty nesters transition out of a single-family home to a multifamily home because the upkeep is easier, and they have a smaller family.
Finally, investors often prefer to purchase multifamily homes as opposed to single-family homes. Multifamily homes can offer multiple streams of income, higher returns, and lower risk. They are not for everyone, though: managing a multifamily residence can be a significant undertaking.
Take Away
Single-family homes are a type of accommodation designed for families, and people who want the privacy and benefits of a home that often has more space and allows for more options for customization. They are also a great investment for individuals who do not want to take on the work of managing a multifamily home.
Marimark Realty
Marimark Realty, home to the top New Tampa Real Estate Agents, focuses on providing a personalized experience for buyers and sellers of real estate. As a full-service real estate agency, we help clients with luxury homes, homes for first-time homebuyers, commercial property, and investment property.
To begin the journey of purchasing or selling your home, or purchasing commercial or investment properties, contact us at your earliest convenience.