Residential Real Estate is comprised mostly of single-family homes, condominiums and town homes. While multifamily properties with less than 4-units typically fall under the definition of residential real estate, they are usually treated as investment properties.
According to the U.S. Census Bureau, there were 133 million housing units in the United States as of 2014. Moreover, the average home price in the United States as of Q2 2016 was $240K, according to The National Association of Home Builders.
- Single Family Homes: Detached buildings affording owners the most privacy and independent living. However, single family homes are also usually the most expensive to purchase and maintain.
- Condominiums: Separately owned units in the same building or complex. Condominiums are usually single-level units and often have entries through a shared hallway or walkway with other units. The building or complex in which the condominium is located is typically managed by a Home Owners Association (HOA), whose members are elected by the condominium owners. Among the duties of the HOA is to determine the monthly HOA fees needed to maintain the overall property, including landscaping, water, garbage, maintenance and sometimes hazard insurance.
- Townhouses: Often attached or semi-detached units in the same complex with more than one floor level and a separate outside entrance. Many townhomes have an outside patio. Like condominiums, townhouse complexes are managed by an elected HOA.