Types of Homes: A Guide for Buyers

The traditional single-family house has plenty of upsides: privacy, space and the freedom to make as many changes as you want (within the scope of zoning regulations, of course).

But they aren't for everyone, and they're far from the only type of home you can buy. Depending on your needs and location, alternatives like a condo or a factory-built modular home may be a better and less-expensive option.

Here's a primer on the types of homes out there.

Site-built, detached single-family houses

When you're looking at real estate, "single-family home" usually means a site-built, detached home designed for one household. Site-built — indicating the house was built at its location — distinguishes this type of home from manufactured and modular homes.

"Detached" means direct access to the outdoors and no common walls or utilities shared with other residences. Typically, there is also some outdoor space of your own, maybe as little as a strip of land on each side of the house.

Most residences in the U.S. — about 61% — are detached single-family houses, according to 2023 U.S. Census Bureau data.

» MORE: How much can you afford to spend on a home?

Condos

A condominium, or condo, can be a more affordable alternative to a single-family home. Condos in a multistory building are virtually indistinguishable from rental apartments, and side-by-side or detached condos may look like townhouses.

What sets condos apart is what you own. When you buy a condo, you have sole ownership of the walls and everything inside the unit. You also have joint ownership of outdoor and shared spaces.

The joint ownership aspects of the complex are handled by a condominium association, similar to a homeowners association for single-family homes. As a condo owner, you’ll pay a monthly association fee for all the maintenance, landscaping and other upkeep that takes place outside your unit.

» MORE: See today's rates for condo mortgages

Townhouses

A townhouse is a blend of a detached single-family home and a condo. When you buy a townhouse, you have sole ownership of your unit's parcel of land and may be responsible for maintaining it. Generally, townhouses are built alongside rather than on top of one another, so you share walls with other units, but don't have neighbors living above or below your space.

» MORE: What to know about buying a townhouse

Co-ops

When you buy a co-op (short for cooperative housing), instead of owning an individual unit, you're a shareholder in the building or development. The amount of stock you have in the co-op, and what it's worth, will depend on the value of your individual unit and how the co-op's finances are structured. Though you might assume all co-ops are apartment buildings or condo complexes, any type of living situation, including a development of single-family homes, can be a co-op. A co-op is really a type of homeownership rather than a type of home. If you buy into a co-op, be prepared to pay maintenance fees and abide by the co-op board's rules.

» MORE: Compare the costs of renting vs. buying