What Are the Main Types of Multifamily Housing?
Table of Contents
What Are the Main Types of Multifamily Housing?
Multifamily houses are made for multiple families to live in a single house. There are multiple types of multifamily housing, the most trending of which are: triple-decker houses, townhouses, row houses, and apartment buildings.
People choose multi-family housing for affordability, proximity to employment and amenities, and the benefits of community living. According to the U.S. Census Bureau, over 30% of residential buildings in high-density regions fall under one of these categories.
This guide provides a structured comparison of these housing types using consistent criteria to help homeowners and prospective investors evaluate their suitability based on long-term value, upkeep demands, and spatial functionality.
What is Multifamily housing?
Multifamily residential, also known as multidwelling unit is any residential property with more than one housing unit. Multifamily housing is a category of residential real estate where a single building or complex contains multiple independent living units for separate households.
Unlike single-family homes, these structures are designed to accommodate two or more families. Each structure has its own private living space and amenities. Units can be next to each other (side-by-side units) or stacked on top (top and bottom units). Most common forms include:
- Triple-decker house
- Townhouse
- Row house
- Apartment building
1. Triple-Decker House
A triple-decker also known as a three-decker is a three-story residential building where each floor typically contains a separate apartment unit.
A triple-decker house is uniquely suited for densely populated neighborhoods. To better understand its enduring appeal, it’s important to explore the defining features that set the triple-decker apart.
Architectural Design
Cost and Affordability
Maintenance Requirements
Investment Potential
What are the Key Benefits of a Triple-Decker House?
Here are some significant benefits of buying a triple-decker house:
- High Rental Yield: Each floor can be leased separately, generating up to 3 rental incomes per property.
- Cost Efficiency: With a median cost of $550,000–$750,000 in Eastern Massachusetts, triple-deckers offer more square footage per dollar than other multifamily options.
- Urban Accessibility: Common in densely populated cities like Quincy, Milton, and Weymouth. Because of which they offer proximity to public transportation, schools, and services.
- Tax Benefits: Owners may qualify for deductions on depreciation, repairs, and mortgage interest when units are rented.
- Vertical Separation: Distinct levels provide greater privacy between tenants compared to horizontal multifamily layouts.
Key Considerations:
Despite their benefits, triple-decker houses also come with a few notable challenges:
- Intensive Exterior Maintenance: Due to their age and wood-frame construction, these homes often need frequent roof inspections, siding repairs, porch stabilization, and gutter cleanings.
- Structural Aging: Many triple-deckers date back to the early 1900s, requiring updates to plumbing, wiring, and insulation.
- Limited Parking: Urban zoning rarely includes sufficient on-site parking, posing issues for multi-tenant occupancy.
- Financing Challenges: Lenders may impose stricter terms on older multifamily homes with deferred maintenance or partial occupancy.
- Shared Infrastructure: Older units may rely on a single heating or electrical system, complicating utility billing and renovations.
2. Townhouses
A Townhouse is a multilevel residence sharing one or two walls with adjacent units.
A townhouse blends privacy with community living. To better understand its practical appeal, it’s important to explore the defining features that distinguish townhouses from other multifamily options.
Architectural Design
Cost and Affordability
Maintenance Requirements
Investment Potential
What are the Key Benefits of a Townhouse?
Townhouses offer several practical benefits for homeowners and investors alike, as highlighted below:
- Lower Maintenance Burden: Many townhouses are part of homeowners’ associations (HOAs), which often handle exterior maintenance like roofing, siding, and communal landscaping.
- Affordability: In suburban Massachusetts areas, townhouses range from $450,000 to $650,000. They are more accessible than detached homes in the same neighborhoods.
- Efficient Use of Land: Townhouses offer multi-level living on compact plots, making them suitable for urban and high-density areas.
- Private Entrances: Unlike apartments, townhouses typically feature individual entrances and garages, providing a sense of autonomy and security.
- Steady Appreciation: With proper upkeep and location advantages, townhouses tend to appreciate moderately, offering stable long-term value for owners and investors.
Key Considerations:
However, there are a few limitations of townhouses to consider before making a decision:
- Shared Walls: Attached units may lead to noise transfer and less privacy compared to detached homes or triple-deckers.
- HOA Restrictions: Homeowners’ associations can impose rules on renovations, exterior colors, and landscaping, limiting customization.
- Limited Yard Space: Outdoor space is often small or non-existent, which may be less appealing to families with children or pets.
- Recurring Fees: Monthly HOA dues, typically between $200 and $400, add to the ongoing cost of ownership.
- Moderate Resale Competition: In areas with numerous similar units, selling a townhouse may take longer unless upgrades or location stand out.
3. Row House
Row houses are a series of identical or nearly identical homes joined by common sidewalls.
A row house offers a balanced blend of individuality and uniformity in urban layouts. To better understand its architectural and functional value, it’s important to explore the following features:
Architectural Design
Cost and Affordability
Maintenance Requirements
Investment Potential
What are the Key Benefits of a Rowhouse?
Row houses bring specific advantages that may appeal to urban dwellers and mid-size investors:
- Efficient Land Use: Row houses maximize limited urban space, offering individual units with private entrances in a compact footprint.
- Affordability: Typically priced between $400,000 and $600,000, they are often more budget-friendly than detached homes in nearby neighborhoods.
- Urban Accessibility: Located close to city centers, they appeal to commuters and residents seeking proximity to public transport and amenities.
- Lower Heating and Cooling Costs: Shared walls on both sides help insulate units, reducing energy consumption throughout the year.
- Consistent Exterior Design: Uniform facades contribute to neighborhood aesthetics and can maintain or enhance property values.
Key Considerations:
Considerations for row houses are outlined here to provide a balanced perspective:
- Limited Natural Light: Shared side walls reduce the number of windows, sometimes leading to darker interior spaces.
- Exterior Maintenance Coordination: Though each unit is owned individually, adjacent wall repairs or roofing work may require cooperation among neighbors.
- Minimal Yard Space: Outdoor areas are often confined to small front stoops or back patios, limiting landscaping or recreational options.
- Less Privacy: Direct proximity to neighboring units can result in noise transfer and reduced personal space.
- Older Structures: Many row houses date back several decades and may require updates to roofing, gutters, and masonry for safety and efficiency.
4. Apartment Building
Architectural Design
Cost and Affordability
Maintenance Requirements
Investment Potential
What are the Key Benefits of Apartment Building?
Apartment buildings offer a wide range of advantages, especially for those interested in income generation at scale:
- High Rental Yield: Apartment buildings typically generate strong monthly income due to multiple units, making them a top choice for real estate investors.
- Economies of Scale: Maintenance, insurance, and management costs per unit are often lower when spread across many apartments.
- Professional Property Management: Larger buildings often justify hiring full-time property managers, reducing owner involvement in day-to-day operations.
- Consistent Occupancy Rates: In densely populated areas, apartment units tend to have steady demand, ensuring lower vacancy risks.
- Tax Advantages: Owners may benefit from significant tax deductions, including depreciation, maintenance expenses, and mortgage interest.
Key Considerations:
However, apartment buildings can also pose certain financial and management-related challenges:
- High Initial Investment: Entry costs begin around $800,000 and can run into the millions, limiting accessibility for new investors.
- Intensive Maintenance Needs: Ongoing care for roofing, stairwells, balconies, and exterior walls is extensive and regulated by safety codes.
- Regulatory Complexity: Apartment buildings are subject to more stringent building codes, zoning laws, and inspection requirements.
- Management Overhead: Without proper systems or staffing, managing multiple tenants and units can become operationally demanding.
- Market Sensitivity: Changes in local rental markets or tenant demand can significantly affect profitability.
Comparing Multifamily Housing Types
Feature | Triple Decker House | Town House | Row House | Apartment Building |
Typical Size & Units | 3 units 2–3 bedrooms each | 2–3 stories 2–4 bedrooms | 2–4 stories, 2–3 bedrooms | Studios to 4+ bedrooms |
Construction Era & Region | 1880s–1930s, mainly New England | Nationwide, urban/suburban | Historic East Coast cities | Nationwide, urban/suburban |
Average Cost to Build | ~$1 million per building (triplex) | $300k–$600k+ per unit | Moderate, varies by condition | Varies; a significant portion of the home price |
Typical Market Price | ~$1.2 million in Boston | $400k–$700k+ | $300k–$600k+ | Wide range; strong rental demand |
Maintenance Costs | $5k–$10k/year; wood siding upkeep | HOA fees $200–$350/month | Masonry repairs every 30–40 years | Included in rent/fees; managed professionally |
Privacy & Noise | Limited privacy; floor noise | Shared walls, moderate noise | Shared walls, possible noise | Less privacy, common noise issues |
Outdoor Space | Porch; limited yard | Small yards/patios | Small yards or terraces | Minimal private outdoor space |
Energy Efficiency | Retrofits reduce energy use by 30% | Often energy efficient | Brick offers natural insulation | Modern HVAC and insulation standards |
Zoning & Regulations | Regional zoning limits | HOA rules apply | Historic district restrictions | Building codes and permits apply |
Frequently Asked Questions
Another term for multifamily housing is multi-dwelling unit (MDU). Depending on regional usage and context, it may also be referred to as apartment housing, attached housing, or shared residential housing.
Residential housing is a broad category that includes all types of homes designed for people to live in. On the other hand, Multifamily housing is a subset of residential housing that consists of two or more separate living units within one building
A common example of multifamily housing is an apartment building. Which contains multiple units leased or owned individually. Other examples include duplexes, triple-decker houses, townhouses, and condominiums where more than one family lives in a shared structure.
Summary
Choosing the right type of multifamily housing is a significant decision that depends on a careful balance of design preferences, financial goals, maintenance expectations, and long-term value. Each housing type from the classic triple-decker to the scalable apartment building ,offers distinct advantages and trade-offs for homeowners and investors alike.
Regardless of the choice, considering the condition and care of key exterior elements such as roofing, siding, drainage, and structural access points is essential. These factors not only affect property value and tenant satisfaction but also directly influence long-term returns and safety.
By understanding these nuances and evaluating each option through the lens of your goals, location preferences, and budget, you will be better equipped to make a confident and informed housing decision.
