Exploring Different Types of Homes and What They Costs

Fact checked by Vikki VelasquezReviewed by Andy Smith

If you’re shopping for a new dream home, you may have noticed the many styles, eras, and phrases used to describe properties. Understanding the many types of home and home terminology will help you determine what best fits your needs and tastes.

Two main parameters classify a home: the structure type and the architectural style. The structure type refers to the style of building, such as a single-family home or a condo. The architectural style refers to features and designs, such as craftsman or contemporary.

Key Takeaways

• When starting your new home search, you’ll need to take into account structure type and architectural style. 
• Home structures come in varying sizes, from apartments and condos to tiny homes and single-family houses.
• Determining what you can afford and how much space you need will help you zero in on appropriate options. 
• When it comes to architectural style, the region in which you’re looking to buy will play a big part in the styles that are available. 
• Housing demand, location, the age of the property and whether it has been updated, and neighborhood amenities will all impact the cost of a home. 

Structure Types

Apartment

An apartment is a group of similar units housed in one building that’s owned and operated by a landlord, whether an individual or a corporation. Apartments are often one-story units within a multi-story building. Units can vary from studios (where the living space and kitchen are all one room) to several bedrooms.

Their size makes them manageable to decorate, though there might be restrictions based on the building’s rules.  There also might be rules dictating whether you can own a pet or what kinds of pets are permitted. 

Apartment buildings often have conveniences like an on-site maintenance and repair staff, a shared lobby, laundry and mail rooms, parking facilities, and sometimes a gym or a pool. They tend to have only shared outdoor space, if any.

Apartments and apartment buildings can feel quite social compared to other home structures because of the proximity of neighbors. However, they can also be noisy and lack privacy, as walls can be shared on either side, and there may be units above and below yours. 

Apartments are often rented out, though there may be opportunities to purchase a unit, depending on the building. While you will not build equity as a renter, you generally don’t have to worry about maintenance or repairs to the apartment.

Note

Though rental costs vary widely depending on an apartment’s size and location, the average price in the U.S. was $1,958 per person per month, according to January 2024 data from Zillow. By comparison, a typical monthly mortgage payment–assuming 20% down–is $1,760, according to Zillow. 

Condo

A condo, is typically thought of as being similar to an apartment, is a unit within a larger building. A condo can also be a townhome, and even a standalone home. Sometimes, condos are larger than apartments and can be multiple stories. If you were to rent a condo, it’d most likely be from an individual owner rather than a property manager. When you buy a condo, you buy a unit in a property and also share ownership of common areas, including outdoor spaces and stairwells. 

Instead of having a building manager or landlord oversee your unit, you will be in charge of all the repairs and upkeep if you purchase a condo. Condos are typically subject to the rules of a condo association. The association often also oversees the upkeep of common spaces, which is often funded by monthly fees on top of your mortgage. This can be a plus for landscaping, but it also means you must obey the condo association rules. 

Condos, like apartments, can feel very social since they often share walls. However, you are likely to have more space and, depending on the location, more direct street access with a condo. But since they do not lend the same freedom regarding lifestyle and design choices as a standalone home, they are a more affordable option and can make a great first-home purchase.

Important

The median sale price of a condo in the U.S. as of April 2024 was $349,299.

Townhome

A townhouse or townhome is an individually owned unit that shares at least one wall with another unit but has its own entrance from the street. These structures typically make use of vertical space with multiple stories. Consider them a cross between a condo and a single-family home.

Sometimes, similar to condos, there are shared amenities among a collection of townhouses, including patios and pools. Townhomes can be found in both urban and suburban areas, and are typically more affordable than standalone single-family homes. The median sale price of a townhome in the U.S. as of early 2024 was $371,273. 

Single-Family Home

Unlike condos, apartments, or townhomes, a single-family home is a standalone unit. The majority of homes in the U.S. are single-family houses. Most commonly found in suburbs and rural areas, single-family homes are usually more private and offer more space.

Since they are not connected to other units, you usually have more freedom to renovate than other home types. As owner, you have the sole responsibility of maintaining the property. This style of home often comes at a higher purchase price. 

Technically speaking, a single-family residence is any home with four or fewer units. According to the Census Bureau, the median square footage for a single-family home in 2022 was 2,299 square feet. The median sale price of single-family homes in the U.S. is $427,636 as of early 2024.

Tiny Home

Tiny homes have risen in popularity over the past decade, especially for single adults or couples who want homeownership but with greater financial freedom and less maintenance than other home types. These small units usually range from 60 to 600 square feet. Some are prefabricated, while others are custom builds. If the tiny home isn’t mobile—some are—you’ll need to rent or own the land on which it rests. 

Given their compact nature, tiny homes provide little room for family growth, hosting, or storage, but they are great for supporting solar and other off-grid projects. 

Architectural Styles

When shopping for homes, identifying the time of home you want is only the first step. There is also a broad range of architectural styles to choose from depending on your specific needs and taste. Here are a few of the most popular home styles across the U.S. 

Colonial

Colonial homes have a simple, rectangular, symmetrical structure. Dating back to the 1600s, this home style is popular all over the East Coast. They typically have two or three stories, fireplaces, and brick or wood facades. Some showcase shingle siding and shutters. A classic Colonial house floor plan has the kitchen and family room on the first floor and bedrooms on the second floor. They are generally not open-concept. 

The exterior typically has an entrance at the center with symmetrical windows on either side. There are variations within the Colonial style based on the country of origin of colonial settlers, including Dutch Colonial, which features a large, barn-style roof and creative woodwork; French Colonial, which features iron stairs and balconies and elaborate entrances; and Federal Colonial, which typically features a layout around a central hall.

British Colonial is the most common and recognizable style, which features a centered front door and two windows symmetrically positioned on either side. 

Contemporary

The trends of contemporary architecture are constantly changing. Many of today’s contemporary-style homes have asymmetrical layouts, open floor plans, and lots of natural light. They often feature a mix of contrasting materials and textures, low or flat roofs, and exposed beams. Color schemes are usually neutral and natural, with the goal of minimizing noise and clutter.  

Craftsman

Craftsman-style homes were popular between 1900 and 1930 and have since made a comeback. This architectural style arose on the heels of the Victorian home movement as a more affordable and accessible alternative. Craftsman houses were built throughout the U.S., especially in the Midwest and California. Furniture designer Gustav Stickley created craftsman bungalow kits for homeowners to purchase for about $1,000 and sold them in his magazine, The Craftsman—hence the name.

A craftsman home features clean, sleek lines and visible hardware. Known for its woodwork, this style often contains notable built-ins, such as shelving and seating. On the exterior, craftsman houses often have porches, low-pitched roofs with wide overhangs, exposed roof rafters, and decorative beams under gables.

There is an emphasis on natural colors, and the exteriors of these homes often have painted wood siding with accents of stucco and stone. Inside, they often feature a prominent fireplace.

Mid-Century

Mid-Century modern homes get their name from the design style that boomed from 1945 to 1969. These homes feature large windows, flat roofs, and open-concept interiors. They have a very wide, low footprint and emphasize a connection to nature. They were also designed with family time and entertainment in mind and sometimes feature charming fixtures like conversation pits (below-floor-level built-in seating areas), built-in bars, and large fireplaces. 

Many mid-century modern homes are split-level, with short staircases connecting spaces throughout the house. A muted and natural color palette is common in these homes to complement the floor-to-ceiling windows. Colors include warm earth tones like orange, brown, or mustard, as well as natural wood and brick. Mid-century style homes and furniture have seen a major resurgence in recent years. 

Victorian

Victorian-style homes boomed during the mid to late 1800s, during Queen Victoria’s reign in the U.K. In the U.S., these homes began cropping up about 50 years later, on the heels of the Industrial Revolution.

Around this time, new paint chemical dyes created options for more colorful exteriors that became a noteworthy feature of many early-century Victorians. that made different house colors possible, so bold, bright hues were a noteworthy feature of many Victorians. Later Victorians featured more natural-colored palettes.

These homes often have a steeply pitched roof, bay windows, and a dominant, front-facing gable. They also typically have two to three stories with round towers, turrets, and dormers to add flair and draw attention to the top of the house. The facade is usually asymmetrical with a partial or full-width porch. Homes of this era had romantic, detailed woodworking, much like a toy dollhouse. 

Inside, it is common to find high ceilings, irregularly shaped rooms, doorways separating rooms (versus open-concept), and nooks. The Victorian era was known for its opulence, and stained glass, ornate fireplaces, and decorative wooden staircases can add even more character. 

Factors Affecting Home Costs

Numerous factors can affect the cost of a home. The most obvious, and the one many homebuyers fixate on, is the size. When weighing multiple properties, the price per square foot can feel like the largest deciding factor. But don’t lose sight of the others. Location, school ratings, crime statistics, and proximity to other amenities can all impact the cost of a property and the taxes you’ll pay on it. 

Certain amenities will also increase a home’s value. Outdoor space, including driveways, will make a home more expensive. The age of the home will also impact the cost. If a house is brand new, it may have a higher price point. Likewise, a historic property with updated amenities can also have a steep price. 

The state of the market plays an inordinate role in determining price since demand will impact the cost of square footage. Simply put, when houses are in high demand (as they are now), prices go up. This can also drag up other costs like subcontractor fees due to the strain on the labor force. 

Recent data on construction in North America show that the cost of labor across different types of home renovations, from structural ironworkers to tile setters, increased as high as 2.3% from January to November 2023.

Frequently Asked Questions (FAQs)

Should I Buy or Rent?

If you’re looking to grow your family or build equity, buying can be the smarter move. To determine what mortgage you can afford, use this calculator.

What Is the Most Affordable Type of Home?

A tiny home or prefabricated home is the least expensive type of home one can buy. An analysis by RubyHome found that the average cost of a tiny home in the U.S. is $67,000, which is over 80% cheaper than the average price of a typical single-family home. However, if you do not own land, you may have to cough up some rent money for a place to park the tiny home. A condo or apartment is also an affordable option.

What Is the Best Type of Home for Families With Children?

For families with children, single-family units or townhouses will afford you the most space. You can also look for one with a yard for outdoor play. A single-family home can offer greater privacy and reduced noise, as you will not be sharing any walls with neighbors. It can also be easier to renovate because you would not have to go through an HOA or property manager before proceeding.

What Are the Most Expensive Locations for Buying a Home?

The most expensive home prices are concentrated in coastal cities like New York, San Francisco, and Los Angeles. A home in Manhattan, New York has an average price tag of over $2.7 million, while a home in Honolulu, Hawaii costs an average of nearly $1.7 million. Several California metros make the list of most expensive homes, including San Jose, Orange County, and San Diego.

The Bottom Line

When buying a home, many factors will help you determine what works best for you. Whether you’re looking to save some money with an apartment or invest in a property, factors including location and size will impact your decision.

Beyond your needs, there are many different architectural housing styles that you can choose from. House-hunting can take a long time considering all these factors, but the sooner you get started on narrowing your choices, the faster you’re likely to find a home that’s right for you.

Read the original article on Investopedia.