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Types of Homes: A Guide for Buyers

A site-built, single-family house isn't the only type of home you can buy. Depending on your needs, a condo or modular house may be a better fit.

Kate Wood
Bella Angelos
Chris Jennings
Updated
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The “perfect” home isn’t always the traditional single-family house. For some, it’s a condo in the heart of the city; for others it’s a townhouse close to neighbors or a multi-generational co-op. Choosing a type of home isn't just about style, it’s about matching your budget to your lifestyle and choosing a space you’re happy to call your own.
Here's a primer on the types of homes out there.

Site-built, detached single-family houses

⭐️ Best for: Those who want space, independence and privacy.
  • Maintenance: High
  • Privacy: High
  • Cost predictability: Medium
A "single-family home" usually refers to a site-built, detached home designed for one household.
“Site-built” indicates that the house was built at its location, not brought in as a pre-made structure. "Detached" means there are no shared walls or utilities and you have direct access to the outdoors. 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 recently released American Community Survey data from the U.S. Census Bureau.
» MORE: How much can you afford to spend on a home?

Condos

⭐️ Best for: Those who want convenience, lower maintenance and affordability.
  • Maintenance: Low
  • Privacy: Low to medium
  • Cost predictability: High
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
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Townhouses

⭐️ Best for: Those who want a balance between convenience and space without taking on everything that comes with a standalone house.
  • Maintenance: Medium
  • Privacy: Medium
  • Cost predictability: Medium to high
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

⭐️ Best for: Those who are comfortable with shared ownership and stricter rules in exchange for lower costs and stability.
  • Maintenance: Low
  • Privacy: Low to medium
  • Cost predictability: High
When you buy a co-op (short for cooperative housing), you’re not buying an individual unit, you're buying shares in a corporation that owns the property. The amount of stock you have in the co-op, and what it's worth, reflects your unit’s value and gives you the right to live there.
Co-ops can exist in many types of housing, not just apartments, because they’re a form of ownership rather than a building type. As an owner, you’ll pay monthly maintenance fees and follow rules set by a co-op board.
» MORE: Compare the costs of renting vs. buying

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Multifamily homes

⭐️ Best for: Those looking to combine homeownership with investing, and are willing to take on additional responsibility in exchange for rental income potential.
  • Maintenance: High
  • Privacy: Low to medium
  • Cost predictability: Medium
A multi-family home is defined by shared property features and multiple separate living units under one ownership. Unlike condos, units may share utilities or common spaces (like attics or basements).
Multifamily homes are often duplexes, which have two units that are usually side-by-side and have one owner. Other times, large, older houses are split into multifamily units. A single owner owns the whole property and rents out the separate units inside.
Since each unit has its own entry — and usually its own address — you'll sometimes find what looks like half of a duplex for sale. That's actually a "twin home," which resembles a duplex. These share a wall and a plot of land but are considered two separate lots. Sole ownership of multifamily homes is much more common, so if you're looking to purchase, you're more likely to buy the entire property and rent out units.
» MORE: Pay your mortgage by renting part of your home

Manufactured homes

⭐️ Best for: Those who want affordable homeownership and simpler living, often with more flexibility on location.
  • Maintenance: Medium
  • Privacy: Medium to high
  • Cost predictability: Medium
Manufactured homes are built on chassis in factories, transported in sections and installed on-site on permanent or semi-permanent foundations.
The terms manufactured home and mobile home are often used interchangeably, but there's a key difference. Manufactured homes are constructed according to U.S. Department of Housing and Urban Development (HUD) standards. Mobile homes are those that were built before HUD standards went into effect in 1976.
You can purchase a new manufactured home from a retailer or buy a used one through a real estate agent, an online marketplace, or in some states, a manufactured home development.
A manufactured home can be placed on a rented lot or on land you own or lease. Generally, manufactured homes must be titled as real property with the land and permanently fixed on a foundation to be financed with a mortgage.
Did you know...
Manufactured homes that are titled as personal property are eligible for chattel loans, which generally have lower upfront costs and quicker closing times, but higher interest rates than mortgages.
» MORE: What to know about buying a manufactured home

Modular homes

⭐️ Best for: Those who want a traditional house experience with lower cost and faster build time, without sacrificing privacy or quality.
  • Maintenance: Medium
  • Privacy: High
  • Cost predictability: High
Like manufactured homes, modular homes are also built in factories. But they are constructed according to local and state building codes like traditional single-family homes. After the pieces are transported to the home site, local contractors assemble the parts and place them on permanent foundations.
Modular construction can save time and money because most of the work is completed in a factory, unaffected by weather delays or other on-site issues, according to the National Association of Home Builders. So it may be a less-expensive option than building a home the traditional way.
» MORE: What to know about buying a modular home

Tiny houses

⭐️ Best for: Those who value affordability, simplicity, and flexibility over space and conventional living.
  • Maintenance: Low
  • Privacy: Low
  • Cost predictability: Medium
Tiny houses are generally under 400 square feet and can be movable or built on permanent foundations. If they are at least 320 square feet, they can be built to HUD standards for manufactured housing. They can also be built to comply with recreational vehicle or International Code Council standards.
Tiny houses have grown in popularity over the last decade as people look for different ways to live simply and economically. They cost less, use less energy and take up less space than traditional homes.
If a tiny house sounds appealing, first think about whether you want a movable home to park at different locations (similar to an RV) or a home on a permanent foundation. Then, research state and local laws and zoning codes. The Tiny Home Industry Association has a resource map with links to information on local legislation, builders and tiny home communities.
No matter what type of home you ultimately decide to buy, you'll want to start with the same basic steps: Calculate your homebuying budget, compare lenders, get a mortgage preapproval, then start shopping for your new place.
» MORE: Get preapproved for a mortgage
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