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What is a single-family home, and should you buy one?

Yahoo Personal Finance· Getty Images
Updated 6 min read

Many different types of homes are available to homebuyers, from condos to modular homes, and from townhomes to tiny homes. While buying any of these options will make you a homeowner, only some are considered “single-family homes.”

The National Association of Realtors found that 79% of buyers purchased detached single-family homes in 2023, making this the most popular type of residence for homeowners in America. But what exactly is a single-family home, and how does it differ from other types of living spaces? Here’s what you need to know about single-family homes to decide if they’re the right choice for you.

Learn more: How to buy a house

The definition of a single-family home seems relatively straightforward: a place built for just one family to live in. Generally, detached single-family homes fit this definition and are relatively easy to identify.

However, some essential characteristics of single-family residences differentiate these types of homes from others. The U.S. Census Bureau states that homes must meet the following characteristics to be classified as single-family:

  • Detached or separated by a ground-to-roof wall: While detached single-family homes are the most common home purchase, semi-detached homes (like some townhouses) may also be classified as single-family structures if a ground-to-roof wall separates each living space. That means living quarters with common building facilities (such as a shared basement or attic) cannot be considered a single-family home.

  • Separate heating/air conditioning systems: To be classified as a single-family residence, the dwelling must have its own heating and air conditioning systems, rather than share them with an adjacent home. For example, a condominium may have a single centralized heating, ventilation, and air conditioning (HVAC) system for the entire building. Though each unit is only for a single family, a condo in such a building would not be considered a single-family home.

  • Individual meters for public utilities: Single-family residences must separate utility meters and payments. Detached dwellings will naturally have individual meters and separate household accounts for utilities, but semi-detached homes may share a master meter that measures the usage of the entire building and sub-meters that measure each unit’s usage. If your residence has a shared master meter like that, it is not a single-family home.

  • No units above or below: Even if your place meets the above criteria, if another home is above your ceiling or below your floor, your residence is not single-family.

Any building with units that do not meet all of the above criteria is considered a multifamily home rather than a single-family home.

Several types of homes may meet the U.S. Census Bureau’s definition of a single-family home but do not meet other requirements for eligibility. These criteria include:

  • Single ownership: A single-family residence is intended for one family and has an owner with an undivided interest in the property. For example, a duplex may have a single owner who lives in one unit and rents out the other unit — but because the structure is meant for two separate households, it’s considered a two-family or multifamily dwelling.

  • Foundation type: Homes built on a permanent foundation are more likely to be considered single-family homes than those using a temporary foundation, such as those used for some mobile and manufactured homes.

  • Land ownership: The land on which the residence resides must belong to the property owner for the home to be considered single-family. For example, modular or manufactured homes on leased land are not considered single-family residences. However, if you own the land your modular home sits on, it is more likely to be classified as a single-family home.

Learn more: The best mortgage lenders for first-time buyers

Just because single-family homes are the most popular type of home doesn’t mean they’re your only choice. If you’re shopping for a new home, here are some options that may make more sense for you than a single-family home:

If you want your home to also generate some income, you may be interested in purchasing a duplex or other multifamily housing. These homes have separate units for multiple households, and you can purchase a home like this and rent out the additional units to earn more money and keep your cost of living low.

Dig deeper: How to choose between a single-family vs. multifamily home

Purchasing a condo or co-op in a multifamily residence can be the best of both worlds for many homeowners. You own your unit, so you do not have to answer to a landlord, but you generally do not have to deal with outdoor maintenance and certain types of upkeep personally.

Read more: How to decide between a condo versus a house

These semi-attached homes may sometimes fit the Census Bureau’s definition of a single-family home. Still, it is a good idea to consider them as alternatives to the traditional detached single-family home. Townhomes and rowhouses are typically less expensive than detached homes, and the shared walls make them more economical to heat and cool.

Prefabricated homes may refer to mobile, modular, and manufactured homes. These kinds of residences are considerably less expensive than detached single-family homes. However, in addition to purchasing the prefab house, you will need to secure the land where your home will sit. You can lease land for your home at a mobile home park, or you could place a prefab home on land you own, provided you follow the local zoning requirements.

Dig deeper: Best mortgage lenders for first-time buyers

There are plenty of other types of homes out there other than single-family houses. See whether any of these other options could be right for you.

A single-family home is defined as a dwelling intended for one household to live in. While most are detached, as long as the home has a ground-to-roof wall, separate heating and utilities, and no units above or below it, the U.S. Census Bureau considers it a single-family home. In addition, single-family homes must have a single owner, have a permanent foundation, and be owned by the same person who owns the land.

There are some definite benefits to single-family homes. You’ll have more privacy and space from your neighbors, and unlike with some multifamily buildings, you don’t have to adhere to community decorating or landscaping rules. Also, single-family homes tend to appreciate in value faster than other types of homes.

A con of living in a single-family home is that it’s more expensive than most other home types. This means you’ll have to save up for a larger down payment and make larger monthly mortgage payments. A larger space with no shared walls also means more rooms to heat and cool and more space to maintain, leading to higher maintenance costs. You’re also responsible for all repairs and maintenance, whereas someone else might handle these issues if you lived in a co-op or condo.

This article was edited by Laura Grace Tarpley