In today’s world, people are looking for more than just a place to live. They want a home that gives them fulfillment and a sense of community. And with renting being the fastest-growing housing market segment due to millennials delaying home ownership, the demand for multifamily properties continues to grow.
To know more about multifamily homes vs single-family homes, keep reading.
What’s the difference between multi-family homes and single-family homes?
Multifamily homes are buildings that have multiple units, such as apartments, condos, or townhouses. On the other hand, single-family homes are detached properties that each have one unit.
Typically, single-family homes offer more square footage and a bigger yard, while multifamily properties are typically located in urban areas with a higher density of people. If you’re looking to buy a home, it’s important to understand the pros and cons of each type of Portland property to make the right decision — whether you’re buying a single-family home or a multifamily property.
Why Are People Choosing Multifamily Properties?
This market is growing thanks to several factors, including a shift in demographics, a widening homeownership gap, and a growing demand for walkable communities.
As millennials get older, many are delaying home ownership and renting for longer periods. Additionally, people are living longer, which means more seniors will be renting in the future. Another factor contributing to the growing market is the rise of “renters by choice”. This is a growing segment of the population that prefers to rent instead of buying a home.
Benefits of Single-Family Homes
If you’re looking for a single-family home, here’s why this property type could be the right fit for you: – More square footage: While properties are often smaller units, single-family homes are usually larger — giving you more space to live comfortably.
– More privacy: A single-family home is usually detached from other properties, giving you and your family more privacy.
– More yard space: Many single-family homes come with ample yard space that’s perfect for kids, pets, gardening, or any other outdoor hobbies.
– More long-term investment potential: With single-family homes, you have the option to either rent the property out or sell it in the future.
– More financing options: While financing options vary by bank and borrower, single-family homes are typically easier to get a loan for than multifamily properties — allowing more people to own real estate.
Ultimately, ingle-family homes are generally more affordable than multifamily properties.
If you’re considering buying a mult-family property, here’s why you should give this option some thought: – Good investment: If you purchase a property, you can expect a positive cash flow and an ideal investment opportunity.
– Low-risk/high-reward scenario: With multifamily properties, you can expect lower construction and maintenance costs than single-family homes.
Plus, multifamily properties tend to appreciate over time — making them a solid investment over the long term.
– Perfect for cash flow: If you plan to buy a multifamily property, you can expect positive cash flow from day one — providing you with an instant source of income.
– More affordable option: As rental properties are often less expensive than single-family homes, multifamily properties are a more affordable option for many buyers.
– More long-term investment potential: Like single-family homes, you can expect multifamily properties to appreciate over time.
Which is Better: Single-Family Homes or Multifamily Homes?
It all comes down to personal preference when comparing single-family homes vs. multifamily properties. While many people prefer to buy single-family homes, others are drawn to the benefits of multifamily properties — no matter what type of property you choose, it’s important to do your research.
Before you make any decisions, it’s important to understand the right steps to buying a single-family home vs. multifamily property — so you can make the best choice for your situation. If you want to buy a single-family home, you’ll likely need a larger down payment and a stable income. Meanwhile, if you’re interested in purchasing a multifamily property, you’ll likely need less money for a down payment and good credit.
As you can see, there are many advantages to owning either type of property. The important thing is to choose the one that best suits your needs. It’s important to note that both single-family and multifamily properties have their pros and cons. No matter what type of property you own, you can make it an amazing living experience by investing in its long-term value.
At Rent Portland Homes, we specialize in managing single family and multifamily properties in the PDX area.
To learn more about the property management services we can offer you contact us today by clicking here.