Which Is Best: Single-Family VS. Multi-Family Home

Single-family homes and multi-family homes are different types of property that people buyfor very different reasons. If you’re looking for a home foryour family-of-four (and maybe a Golden Retriever) and want moreprivacy, a single-family home might fulfill your needs. It’stypically a stand-alone property that sits on its own land and isdesigned to be a residence for just one family. Multi-family homes,on the other hand, are exactly that — a single building thataccommodates more than one family. This can include duplexes, forinstance, with each part of the unit housing differenttenants. 

Here are the key differences between a single-family vs.multi-family home.

What is a Single-family Home?

Single-family homes might be owned by the family who livesthere. Sometimes, people may also buy them as a second home.It’s common for people living up north to buy single-familyhomes in Florida — and stay in their second home during thewinter to avoid the cold weather. Other times, people might buy asingle-family home as an investment property and rent it out totenants. 

The U.S. Census Bureau has a broader definition of single-familyhomes. It says that single-family homes can “include fullydetached, semidetached (semiattached, side-by-side), row houses andtownhouses.” However, it also states that attached units mustbe separated from the neighboring unit by a ground-to-roof wall tobe considered a single-family home. 

Units built atop or beside each other that do not have aground-to-roof wall separating them — or units that sharecommon areas or utilities — are not considered single-familyhomes. 

In comparing single-family homes vs. multi-family homes,single-family homes are:

• A single-dwelling unit
• More private
• Separated from the neighboring unit by a ground-to-roofwall 
• Do not share common areas with other units
• Do not share heating or air-conditioning systems orutilities

What is a Multi-family Home?

Multi-family are designed to accommodate more than one familyliving separately. For that reason, each unit typically has its ownaddress, entrance, kitchen, and bathroom. They’re oftenpurchased as an investment property, as multi-family homes can berented out to multiple tenants. In some cases, the owner of thebuilding may reside in one of the units or they may choose to rentout all of the units. Investors often use the income they make fromrenting the place out to pay the mortgage and other housingexpenses.  

Another reason people might choose to buy a multi-family homevs. a single-family home is that they have a multi-generationalhousehold. For example, the homeowners may have both aging parentsand young children living with them. This gives the homeowners theability to care for and spend time with their aging parents andtheir children without having to drive to a separate location.Alternatively, it might also be an option for parents who need alittle extra help taking care of their kids — and thegrandparents are there to lend a hand. Either way, it giveschildren the opportunity to get to know their grandparents betterthan they might have if they lived separately, which is always agreat thing. 

In comparing multi-family homes vs. single-family homes,multi-family homes are:

• Residential buildings
• Built with units on top of or beside one another — and donot have a ground-to-roof wall separating them
• Have common facilities (attic, plumbing, etc.)

Which is right for you? To decide between a single-family vs.multi-family home, consider how you plan to use it (residence vs.investment property), who will be living there, how much home youcan afford, how much responsibility you want, and how much privacyyou need.