The Evolution of Multifamily Housing: A Look at the Many Options for Renters and Investors, an apartment, condo, townhome, duplex, triplex, fourplex, garden apartment, mid-rise, high-rise, mixed-use, micro-unit, co-living

Multifamily housing encompasses a wide variety of rental properties with multiple units on a single site. These flexible living spaces meet the needs of a diverse population, from young professionals seeking affordable studio apartments to families opting for townhomes with private yards. Developers and investors also find multifamily housing attractive for its stable occupancy rates and reliable rental income.

The range of multifamily housing types reflects how this sector has evolved over time. Classic walk-up apartments gave way to garden-style complexes before urbanization drove demand for mid-rise and high-rise apartment buildings. Adapting to economic and lifestyle changes, some newer multifamily developments now incorporate mixed-use spaces, micro-units, and co-living arrangements.

Understanding the different categories and terminology can help renters pick the right multifamily housing for their needs. Investors also benefit from distinguishing the nuances of each property type when building a balanced portfolio. Here’s an in-depth look at the many varieties of multifamily housing and what makes each one unique.

The Complete Guide to Multifamily Housing: Apartments, Condos, Townhomes, and More

Apartments

Apartments are likely the first type that comes to mind when thinking of multifamily housing. This broad category covers any rental residence consisting of self-contained units within a larger building or complex. Distinguishing factors include the number of floors, number of units, amenities, and density.

Walk-Up Apartments

Walk-up apartment buildings have one to three stories with exterior entrances directly accessible on foot. Having no elevator, they may contain 4-50 units. Walk-ups are typically older, more affordable buildings constructed between 1900-1950. These low-rise apartments have a more neighborly feel and often feature architectural details like bay windows and Crown molding.

Mid-Rise Apartments

Going higher, mid-rise apartment buildings have four to seven floors. Residents access units via shared internal corridors and at least one elevator. Mid-rise apartments range from 30-100 units with covered parking and laundry facilities. Many built in the 1960s-80s have simple, boxy architecture. Newer mid-rise developments feature more amenities to attract urban renters.

High-Rise Apartments

High-rise apartments are elegant, multifamily housing options in dense, metropolitan areas. With over eight floors, some towers soar to 40+ stories! High-rise apartments have impressive panoramic views, 100+ units, and premium amenities like pools, gyms, and rooftop lounges. Post-2000 luxury high-rises take residential services to new heights with 24/7 concierges and smart home technology.

Garden-Style Apartments

As the name suggests, garden-style apartments sit nestled amid lush garden courtyards and green spaces. Two to three-story buildings house 30-150 units accessible via outdoor walkways. Many garden apartments built in the 1950s-60s have a California-ranch architectural style with private patios and balconies. Family-friendly community amenities may include playgrounds, sports courts, and pools.

Condominiums

Condominiums, or condos, are multifamily homes allowing individual ownership of units within a larger complex. The shared spaces like lobbies, fitness rooms, and rooftop lounges are jointly owned by the condo association. While condos function similarly to apartments, owners can customize their unit and enjoy certain tax deductions. Condos are available in all the same high-rise, mid-rise, and garden configurations as apartments. And some rental apartments do transition into condominiums. Prices vary greatly based on location, amenities, and unit size. But the average condo costs 10-15% more than a comparable apartment.

Townhouses

Townhouses provide a middle ground between apartments and stand-alone homes. Ranging from two to four stories, townhome units share common side walls attached in a row of at least three. But each has its own street entrance and backyard space. Townhouses have all the amenities of single-family homes, like a kitchen, living room, bedrooms, and bathrooms. Attached garages are also common. Newly built townhouse complexes have community perks like pools, fitness centers, trails, and parks. With privacy and outdoor access, townhomes appeal to young professionals, and families and are downsizing empty nesters.

Duplexes

As the name denotes, a duplex consists of just two units—either stacked on top of each other or side-by-side. Both units are fully detached from any other housing. Duplexes have many of the same perks as townhouses, such as private yard space and exterior entrances. These two-in-one homes are often former single-family homes that were converted to multifamily rentals or affordable starter homes for first-time owners.

Triplexes

Going up to three rental units, triplexes offer flexible living arrangements and investment potential. Each unit has its own entrance and amenities. Triplex floorplans include side-by-side units or two units on the main level with another above the garage or basement. Many are converted to large Victorian homes or purpose-built multifamily housing. Triplexes work well for multigenerational families, roommate groupings, and remote workspaces. Owners also benefit from two or three rental incomes.

Fourplexes

Fourplexes contain four apartments or townhouse-style units in a single building on a residential lot. With four front doors and private living spaces, fourplex residents still share some common walls. Quadplex is another term used to describe this multifamily housing type. They are quite popular in urban markets like Chicago and Minneapolis where land costs make single-family homes less feasible. Fourplexes maximize density while blending into traditional neighborhoods.

Garden Apartments

Not to be confused with the garden-style apartments mentioned earlier, garden apartments refer to multifamily buildings constructed around garden courtyards or park-like grounds. They are typically two to three stories tall and arranged in a U-shape, horseshoe, or series of connected wings. Affordable when first built between the 1920s-60s, many historic garden apartments now fall into the luxury category after renovation. For instance, Château Domingue near Audubon Park in New Orleans. Originally built in the 1930s, it was remodeled in 2020 complete with a pool, fitness studio, and dog spa.

Mixed-Use Developments

Mixed-use developments combine residential and commercial spaces in the same building or a unified complex. This allows people to live in immediate proximity to shops, offices, hotels, and entertainment venues. While not a distinct housing type per se, mixed-use projects incorporate all the standard multifamily options like apartments, condos, and townhouses. Some of the most ambitious mixed-use communities are built from the ground up. For example, the 45-acre Del Mar Station in Pasadena, CA integrates over 1,200 residences with a shopping mall, parks, offices, and transit center. Repurposing old warehouses and industrial buildings also creates unique mixed-use housing in trendy downtowns.

Micro Units

Micro units represent an innovative apartment category gaining ground in high-density cities like New York and San Francisco. These compact rentals can be as small as 220 square feet yet still have a kitchen, bathroom, closet, and living space. Efficient furniture, sliding partitions, and fold-down beds maximize the use of the limited area. Micro units provide affordable housing for single urban dwellers and appeal to eco-conscious minimalists. Some of the tiniest examples include Carmel Place in Manhattan with 55-square-foot apartments and SmartSpace in San Jose with units as small as 125-square feet.

Co-living

Co-living communities trade private living quarters for more shared communal spaces. Individual furnished bedrooms rent by the month. However, residents have access to expansive lounges, kitchens, workspaces, gyms, dining areas, and outdoor zones for interacting with fellow residents. This flexible setup accommodates mobile remote workers and city dwellers seeking temporary or affordable housing. It also fosters spontaneous connections, which is part of the appeal for young professionals. The co-living industry took off in the 2010s with companies like Common, Quarters, and Starcity. Rooms in co-living high-rises now rent for premium rates comparable to luxury apartments.

Multifamily Housing Grants and Programs

In addition to categorizing the different structural variations of multifamily housing, it is also important to note the governmental assistance programs available. These grants and initiatives help fund affordable housing projects and enable more people to access safe, stable rental residences. Some of the most impactful programs include:

• Low-Income Housing Tax Credits: The LIHTC program gives tax credits to incentivize developers to create affordable rental housing. It has funded over 3 million units since 1986.
• HUD Multifamily Insurance Programs: The FHA provides insurance to HUD-approved lenders that finance multifamily projects meeting affordability requirements. This mitigates risk and encourages lending.
• Rural Housing Stability Assistance: Grants assist with land acquisition, building repairs, and rental subsidies for multifamily housing in rural areas.
• Housing Trust Fund: Block grants help build and rehabilitate rental housing for extremely low and very low-income residents. Funds are allocated to state governments.
• HOME Investments Partnership: HUD distributes grants to states and localities for building, buying, and rehabilitating affordable housing for low-income renters. It has created over 1 million units since 1990.

Government policies and incentives continue to shape the evolving landscape of multifamily housing. The sector must adapt to meet demand across the socioeconomic spectrum—from luxury high-rise rentals to affordable mixed-use communities. Understanding how the many pieces fit together is key for investors, developers, urban planners, and policymakers. It also helps everyday renters make informed decisions when searching for a place to call home. The variety of available multifamily housing provides flexible solutions for any lifestyle or budget.