What are the types of multifamily housing?

Multifamily housing come in all shapes and sizes, from cozy duplexes to towering high-rises. Each type offers unique opportunities, and knowing how they differ can help you make informed investment and management decisions.

In this blog, we’ll explore the different types of multifamily housing, from low-rise duplexes to high-rise complexes and mixed-use developments. We’ll dive into their defining features, investment potential, and management considerations, helping you choose the best option for your portfolio. Whether you’re looking for stability, convenience, or growth potential, there’s a multifamily property to suit every need.

What defines a property as multifamily housing?

Multifamily housing comes in various forms, catering to different needs and lifestyles. The four types of multifamily housing structures typically include duplexes, triplexes, garden-style apartments, and larger high-rise buildings. Each type offers its own set of management challenges and investment opportunities.

Multifamily housing is designed to accommodate multiple households under one roof, but that doesn’t mean one size fits all. You’ll find everything from two-unit duplexes to massive apartment complexes, each catering to different lifestyles and needs. In fact, about 31.4% of housing in the U.S. today is multifamily, according to the U.S. Census Bureau.

How do multifamily structures differ from single-family homes?

The primary difference between single-family homes and multifamily properties lies in how many households they can accommodate. A single-family home is designed for one household, offering more privacy and space, while multifamily properties are built to house multiple families in separate units under one roof. Multifamily properties often come with shared amenities, such as pools, gyms, or lounge areas, that attract tenants who enjoy community living and added conveniences that single-family homes typically don’t offer.

For example, imagine a single-family home with a backyard and garage compared to a multifamily property where residents share a pool, fitness center, and parking lot. While single-family homes give families their own space, multifamily properties appeal to renters looking for both affordability and a sense of community. This means that there is quite a big difference in multifamily property management compared to single-family home management.

Low-rise multifamily housing

Low-rise properties are perfect for residents looking for a smaller, more intimate living environment. These buildings typically have fewer than four stories and can include anything from duplexes to garden-style apartments. Low-rise housing is easier to manage but may offer fewer amenities compared to larger complexes.

What are duplexes, triplexes, and fourplexes?

Duplexes, triplexes, and fourplexes are popular types of low-rise housing, each containing two, three, or four separate units, respectively. These buildings fall under the category of low-rise multifamily properties and are some of the most common examples among the four types of multifamily housing structures. Think of a duplex as two homes sharing a wall but with separate entrances, giving residents privacy while still having a neighbor close by.

How do garden-style apartments fit into the multifamily category?

Garden-style apartments are low-rise buildings surrounded by landscaped outdoor spaces, creating a peaceful, suburban feel. They’re perfect for tenants who want access to nature while living close to urban areas. For property managers, garden-style apartments can be appealing because they’re often easier to maintain, though you’ll need to invest in landscaping to keep the property attractive.

Mid-Rise Multifamily Buildings

Mid-rise buildings are typically four to eight stories tall and offer a good balance between the community feel of low-rise properties and the amenities of high-rises. These buildings are ideal for urban and suburban environments and tend to attract young professionals and families. In fact, mid-rise apartments often include features like fitness centers, shared lounges, and even rooftop spaces, making them a popular choice for those seeking a little luxury.

What characterizes mid-rise apartment buildings?

Mid-rise buildings offer more living space than low-rise options while remaining more affordable than high-rise complexes. With multiple floors and an array of amenities, they appeal to tenants who want convenience without the hefty price tag of a high-rise. You’ll find these buildings in both bustling city neighborhoods and quieter suburban areas, offering a variety of living experiences.

How do mid-rise structures compare to low-rise in terms of management?

Managing a mid-rise building typically requires more effort than a low-rise property due to the increased number of units and added amenities like elevators or fitness centers. With more residents comes the need for additional maintenance, but the higher rental income from the extra units can often balance out these costs. For example, as smart technology becomes more common, you may find yourself managing a building with automated systems for lighting, heating, and security—requiring less manual oversight but more tech-savvy management.

Picture this: in a low-rise building, you might handle routine repairs and tenant issues on a personal level. In a mid-rise, you’re also overseeing advanced systems like keyless entry or centralized climate control, which can streamline operations but also present new learning curves. The challenge lies in keeping everything running smoothly, but the reward is often higher rental returns and tenant satisfaction.

High-rise multifamily complexes

High-rise buildings are often located in city centers and can stand at nine stories or more. These properties usually attract tenants who prioritize convenience, luxury, and views, often featuring upscale amenities like rooftop pools or gyms. Managing high-rise buildings comes with its own set of challenges, but the potential for higher rental income makes it worth the effort.

What defines a high-rise multifamily building?

A high-rise building is typically defined as any building with nine or more stories, often housing hundreds of units. High-rise complexes often come with premium features like concierge services, rooftop terraces, and high-speed elevators, catering to tenants willing to pay for the best. They’re a great investment, especially in densely populated urban areas where housing demand is high.

What unique challenges do high-rise apartments present?

Managing a high-rise property can feel like running a small town. You’ll have to deal with everything from elevator maintenance to waste management for hundreds of residents. Additionally, high-rises require comprehensive housing asset management strategies to ensure that all the units, shared spaces, and amenities are well-maintained and functioning efficiently, which helps maximize the property’s long-term value.

Mixed-use multifamily developments

Mixed-use developments are all about convenience, blending residential living with commercial and retail spaces. Imagine walking out of your apartment and grabbing coffee at the café downstairs before heading to work. These developments are growing in popularity, especially in urban areas where space is limited.

How do mixed-use properties incorporate multifamily housing?

Mixed-use properties combine homes with spaces like shops, restaurants, and even offices. This setup is perfect for tenants who value convenience, as they can live, work, and play all in one place. For example, some mixed-use properties are built near public transit hubs, making commuting even easier for residents.

What are the advantages of mixed-use multifamily structures?

One of the biggest perks of mixed-use developments is the lifestyle they offer. Residents love the ease of having everything they need—groceries, fitness centers, and even entertainment—just steps away from home. For property managers, mixed-use properties offer diverse income streams, attracting both residential and commercial tenants, which can help reduce the risk of vacancies.