What Is A Single-Family Home?

Photo: Getty Images; Illustration: Bankrate

In the world of real estate, there can be a dizzying amount of lingo to learn and understand. This is especially true if you’re looking to buy a new home, since you’ll need to be familiar with the terminology used to describe different types of properties before you can be ready to make an offer.

One term you’ll hear often is “single-family home.” It may seem self-explanatory, but what is a single-family home exactly? How is it different from other types of homes, and do you have to have a family to live in one? We answer these questions and more below.

Single-family home definition

The first thing to note is that a single-family home has nothing to do with how many people live there (or whether they are related to each other). In most cases, it’s exactly what you’d imagine it to be — a freestanding home set alone on its own piece of property. It doesn’t matter whether it’s occupied by one individual or a big family, as long as all the occupants constitute a single household.

The government provides a broader definition. According to the U.S. Census Bureau, single-family homes may be “fully detached, semi-detached, row houses and townhouses.” However, for a dwelling that’s attached to other homes to be considered a single-family home, it “must be separated from the adjacent unit by a ground-to-roof wall.” Also, units that are attached in some way must not share heating or air-conditioning systems or utilities, nor have other units located above or below.

Single-family home vs. multi-family home

You may be wondering if a single property that hosts multiple units can be considered a single-family home. An example might be a home on a single lot that has a primary residence downstairs and a small apartment upstairs. The answer in this case would be no: A single-family home cannot have multiple units, as this doesn’t follow the definition set by the Census Bureau.

A townhouse, however, can be considered a single-family home, despite the fact that it is attached to other units. That’s because townhouse owners have ownership of both the interior and exterior of their home, along with the land it’s built on. Each townhouse is a singular, privately owned dwelling unit designed for a single household, and any shared walls will extend the entire length of the structure, ground-to-roof, with no common or shared space.

Financial responsibilities of single-family homeownership

The financial responsibilities of owning a house can be significant and will depend in large part on the location and condition of the home you buy. Typical costs include monthly mortgage payments, as well as home maintenance and emergency repairs. In order to be prepared for the latter, you might consider setting up an emergency fund.

By staying on top of regular maintenance tasks, you can avoid minor issues turning into major problems. Acquiring do-it-yourself skills can also help save you money on day-to-day upkeep and small repairs. And remember that the more land your home is on, the more expensive its upkeep will be, since you’ll also have to consider tasks like mowing, landscaping and tree services.

Last but not least, be sure you have a plan for other common types of homeownership costs like property taxes, homeowners insurance premiums and HOA fees (if applicable). Remember the acronym PITI, which stands for principal, interest, taxes and insurance, to help you manage your monthly mortgage payments.

Who are single-family homes best for?

There’s no perfect home that will suit everyone’s tastes. Whereas some house-hunters will want to buy a home with a huge yard and plenty of room to spread out, others might prefer a multi-family property they can use to earn rental income. Others still might seek out a low-maintenance condo or townhome that includes HOA benefits like landscaping and snow removal.

For the most part, single-family homes are best for owners who can afford the luxury of more space and privacy — and who have the time and money required for upkeep.

Pros and cons of living in a single-family home

Pros

• More privacy: Since single-family homes don’t share walls and usually sit on their own parcel of property, you’ll have more privacy (and hear less noise) than you would in a shared dwelling.
• More space: Single-family homes tend to be bigger than multi-family dwellings. They also typically have more storage space, including outdoor spaces like garden sheds and garages.
• More options: Single-family homes make it easier to personalize your home’s exterior and landscaping. You can add to or modify the structure more easily as well.

Cons

• Higher prices: Single-family homes tend to cost more than multi-family properties, especially if they’re set on a lot of land.
• Less income potential: Unlike multi-family properties, where the owner might live in one unit and rent out the others, single-family homes don’t typically generate much income for owners.
• More responsibility: Unless your single-family home is part of an HOA community that provides basic services, you’ll have to deal with maintenance and repairs on your own — or pay someone else to do it.

Other housing types