You are ready to rent, but you quickly find that there are so many options to sort through. Which is better for you, an apartment home in a multifamily building or a single-family home? This guide will help you make an informed decision based on your lifestyle, budget, and priorities.
Be sure to ask yourself the right questions as you commence your search. Set priorities by distinguishing between your “wants” and your “must-haves.”
Do you prefer a more urban, suburban, or rural lifestyle? What kind of commute are you comfortable with? Is access to public transit important to you? What kind of “walk score” does the property have? Is saving money a priority right now?
Multifamily vs. single-family: Key factors to consider
The type of access distinguishes apartments from single-family dwellings. Apartment communities typically feature shared hallways and stairways, while single-family homes have a private outside entrance.
Space
A single-family house rental offers room to roam, both indoors and outdoors. There may be a basement, an attic, or even a shed. A house might be ideal for a larger family. There’s often more space for sports equipment, hobbies, and hosting parties. Four or even five-bedroom homes are sometimes an option.
Larger apartments also address storage and other space requirements. For example, in McKinney, TX, Bell Tower Flats offers three-bedroom apartments as large as 2,073 square feet. In Austin, TX, the two-bedroom units at DK Riata are as large as 1,848 square feet.
Townhomes and duplexes are also options. They add space, but often at a lower rent than that of a single-family residence. They usually feature private entrances. Many come with basements and attached garages that expand your storage options. In Austin, TX, DK Riata has two-story townhomes, some with attached garages.
Amenities
Larger multifamily complexes often have the scale to offer amenity-rich facilities. Examples include resort-style pools, grilling stations, fire pits, dog-walking areas, basketball courts, and rooftop lounges. Shared amenities may help you connect with neighbors and make new friends.
Upscale amenities at Burnham Pointe in Chicago’s Printer’s Row neighborhood include a rooftop terrace, fitness center with yoga studio, indoor dog park, and outdoor grilling areas. In Phoenix, AZ, Senita at Cave Creek residents enjoy a resort-style pool with cabanas, a 24/7 fitness center, and a spin/yoga room with Peloton bikes. Pet owners appreciate the pet park and indoor wash station.
Maintenance
Multifamily developments are often owned by larger companies using professional management services capable of delivering timely maintenance. You’ll even find on-site maintenance services at some multifamily complexes.
A single-family home with a yard often requires more upkeep than an apartment. The tenant might be responsible for lawn care and snow removal. Indoors, extra space means more cleaning.
Privacy and security
Multifamily communities often have layers of security, like passcodes and front desk staff. Larger complexes may employ full-time security guards. Residents may feel better knowing that they have neighbors close by. Secure parking and parcel delivery deliver added peace of mind. So does the fact that multifamily developments must meet stringent fire codes and safety regulations.
With the right apartment, sound-resistant construction reduces street noise. It may also reduce sound transmission from adjacent units.
Location
Do you work in the central city? If so, a single-family home rental may mean higher commuting costs. In densely populated areas, single-family residences may not be available for rent, or they may be cost-prohibitive.
By comparison, living in a multifamily development that is closer to work reduces commutes. There is a bonus: these communities are often near restaurants, shops, and public transit.
For example, in Chicago’s River North neighborhood, Grand Plaza is within walking distance of hundreds of stores, restaurants, and entertainment venues.
Cost
According to RentCafe, an average apartment in the United States costs $1,755 and is 903 square feet in size. Single-family homes often rent for more. Extras like a yard, garage, and basement come at a price. As of late 2024, Zillow notes that “single-family rents were 20% higher than multifamily rents.”
Furthermore, Zillow notes that the rent difference between apartments and single-family homes is now higher than at any time since 2018. This is due in part to a 50% surge in the value of single-family residences since 2020. Owners now pay more for single-family properties, and property taxes may also increase. Mortgages also cost more than they did several years ago.
The overall demand for single-family homes also leads to higher rents. Changing demographics also drive some of the increase. In 2000, the 55+ age group represented 20% of the population. By 2020, they accounted for 30% of the population. This group includes many heads of households who want single-family homes.
Leasing flexibility
Owners of single-family homes tend to favor standard one-year leases. But what if you need a place for a non-standard time period?
If so, you may find more flexible lease terms at a multifamily development. However, lease uncertainty is occasionally an issue with single-family homes. If the owner decides to sell, a tenancy might end, or a lease renewal might only be available under less attractive terms.
Those who rent out single-family homes may take a more informal approach to their tenants. Some renters will be more comfortable with this than others. By contrast, owners of large apartment complexes typically have more formal procedures that protect lessor and lessee alike.
Either way, it is important to get all agreements in writing. This includes lease terms and procedures for making maintenance requests.
About Draper and Kramer
Draper and Kramer is a full-service real estate firm founded in 1893. We manage amenity-rich apartment communities in the Midwest and the West. Look for us in major metropolitan areas in Illinois, Missouri, Texas, Colorado, and Arizona. Browse our entire selection of luxury apartment properties here.
