multifamily

Multifamily refers to housing projects designed to accommodate more than one family within a single building or development. The term covers a range of property types, including rental apartment buildings, condominiums, cooperatives, townhomes, and mixed-use developments where multiple dwelling units are contained on one site.

Ownership and tenure: Multifamily properties can be owned by a single landlord who rents units to tenants, or by individual owners in condominium or cooperative setups. In condos, owners hold title to their units and share ownership of common areas; in cooperatives, residents own shares in a corporation that provides the right to occupy a unit and to participate in the building’s governance.

Structure and scale: Multifamily properties vary from two- to four-unit buildings such as duplexes and triplexes to mid-rise and high-rise complexes with hundreds of units. Garden-style apartments, podiums, and other designs are common. The scale influences management approaches, financing, and amenity offerings.

Operations and management: Day-to-day management includes leasing, maintenance, and the administration of common spaces and amenities. Properties may be self-managed or operated by professional firms. On-site amenities often include parking, fitness centers, laundry facilities, and landscaped areas.

Finance and economics: As an asset class, multifamily housing is typically financed with commercial real estate loans underwritten on net operating income and debt service coverage. Lenders include banks, life insurance companies, and, in some markets, government-backed financing programs.

Market role and policy: Multifamily housing expands urban density and housing supply, offering rental options across income levels. It is influenced by local zoning, land-use regulations, construction costs, and rental market dynamics.