Chicago buyers can choose from several property types including condominiums, townhomes, single-family houses, multi-family buildings, and mixed-use properties. Each option offers different ownership structures, maintenance responsibilities, financing options, and investment potential.

Buying Real Estate in Chicago and the North & Northwest Suburbs

Chicago and the surrounding suburbs offer a wide variety of housing options including condominiums, townhomes, single-family houses, small multi-unit buildings, large apartment buildings, and mixed-use investment properties. Each type of property has different ownership structures, financing options, maintenance responsibilities, and investment potential.


Understanding the differences between these property types can help buyers choose the type of real estate that best fits their goals. Some buyers are focused on low-maintenance homeownership, while others are looking for rental income or long-term real estate investment opportunities.
This guide explains the most common types of properties available in Chicago and nearby suburbs, along with the advantages and disadvantages of each option.

Home Buying Tutorials

If you are new to buying real estate or want to better understand the process, you can review our home buying tutorials which explain topics such as financing, inspections, negotiations, and closing steps.

View Home Buyer Tutorials

What Is a Condominium (Condo)?

A condominium is an individually owned unit within a larger building or community where owners share common areas such as hallways, roofs, parking areas, landscaping, or amenities. Condo owners typically own the interior of their unit while the building structure and common areas are maintained by a homeowners association (HOA). :contentReference[oaicite:0]{index=0}


Advantages of Buying a Condo

• Often more affordable than single-family homes • Lower maintenance responsibilities • Shared amenities such as gyms or pools • Good option for first-time buyers or downsizing homeowners

Disadvantages of Buying a Condo

• HOA fees • HOA rules and restrictions • Shared walls and less privacy • Resale values may appreciate slower than houses

What Is a Townhome or Townhouse?

A townhouse is a multi-level home that shares one or more walls with neighboring homes but usually has its own entrance and sometimes a small yard or garage. Townhomes often provide a middle ground between condos and single-family homes. :contentReference[oaicite:1]{index=1}


Advantages of Buying a Townhome

• Often more space than a condo • Usually less expensive than a detached house • May include garage or outdoor space • Some maintenance handled by HOA

Disadvantages of Buying a Townhome

• Shared walls with neighbors • HOA rules may apply • Limited outdoor space compared to houses

What Is a Single-Family Home?

A single-family home is a detached residential property designed for one household. The owner typically owns both the building and the land it sits on. Single-family homes provide the highest level of privacy and control over the property. :contentReference[oaicite:2]{index=2}


Advantages of Buying a Single-Family Home

• Maximum privacy • More space and yard area • Greater freedom to renovate or modify • Often stronger long-term resale demand

Disadvantages of Buying a Single-Family Home

• Higher purchase price • All maintenance responsibilities fall on the owner • Property taxes and insurance may be higher

What Is a 2-4 Unit Multi-Family Building?

A 2-4 unit building is a residential property containing two, three, or four separate apartments within one structure. Owners sometimes live in one unit while renting the others, a strategy often called “house hacking.” Multifamily properties provide multiple income streams from tenants. :contentReference[oaicite:3]{index=3}


Advantages

• Rental income potential • Owner can live in one unit and rent the others • Residential financing may still be available • Multiple income streams reduce vacancy risk

Disadvantages

• Landlord responsibilities • Tenant management • Higher maintenance and operating costs

What Are 5+ Unit Apartment Buildings?

Properties with five or more residential units are usually considered commercial multifamily real estate. These buildings are typically evaluated based on their rental income and operating performance rather than residential comparable sales.


Advantages

• Larger income potential • Multiple rental units • Professional investment property

Disadvantages

• Commercial financing required • More complex management • Higher purchase prices

What Is a Mixed-Use Property?

A mixed-use building combines residential units with commercial space such as retail shops, restaurants, or offices in the same property. These buildings are common along Chicago commercial corridors and downtown districts.


Advantages

• Multiple income streams • Potential for higher rents from commercial tenants • Often located in high-traffic areas

Disadvantages

• Commercial tenant risk • More complex financing • Zoning considerations

Property Type Comparisons


Condo vs Townhome

Condos usually involve ownership of only the interior unit, while townhome owners typically own both the structure and the land associated with their unit.

Townhome vs Single-Family Home

Townhomes share walls with neighbors, while single-family homes are detached and provide more privacy and control.

Single-Family vs 2-4 Unit

Single-family homes contain one household, while 2-4 unit buildings include multiple apartments and may produce rental income.

2-4 Unit vs 5+ Unit Buildings


2-4 unit buildings are usually treated as residential real estate, while properties with five or more units are generally classified as commercial investment properties.

Frequently Asked Questions About Buying Real Estate



What type of home is best for first-time buyers?
Many first-time buyers consider condos or townhomes because they are often more affordable and require less maintenance.

Is a condo cheaper than a house?
Condos are often less expensive than detached homes because owners share the building structure and land with other residents, which can lower the overall purchase price compared to single-family houses.

What type of property builds the most equity?
Single-family homes often experience strong long-term appreciation because they include both the house and the land.

Can you live in one unit of a multi-family building and rent the others?
Yes. Many owners live in one unit while renting the other units to generate income.

What property types are best for investors?
Multi-family properties and mixed-use buildings are commonly purchased by investors seeking rental income.

How to Request a Property Showing

If you would like to see a property in person, this short video below explains how the showing process works and how to schedule tours efficiently.



Get Pre-Approved for a Mortgage

Before scheduling property tours, many buyers choose to get pre-approved for a mortgage. A pre-approval helps determine your price range and shows sellers that you are financially prepared to purchase a home.

You can begin the pre-approval process here:

Start Your Mortgage Pre-Approval

Mark Latuszek – Local Perspective


One of the most common questions buyers ask is which type of property they should purchase. The answer depends on several factors including budget, lifestyle preferences, maintenance tolerance, and whether the buyer is interested in rental income or purely homeownership.

Chicago offers a wide variety of housing options ranging from downtown condominiums to classic Chicago two-flats and suburban single-family homes. Each property type has advantages depending on what the buyer wants to accomplish. Understanding the differences between these property types helps buyers make more informed decisions when searching for their next property.

Areas I Cover

Chicago Neighborhoods
Albany Park Andersonville Avondale Belmont Cragin Dunning Edgewater Edison Park Forest Glen Hermosa Irving Park Jefferson Park Lakeview Lincoln Park Lincoln Square Logan Square Montclare Near North Side North Center North Park Norwood Park Old Town Portage Park Ravenswood Rogers Park Roscoe Village Uptown West Rogers Park
North & Northwest Suburbs
Arlington Heights Barrington Deerfield Des Plaines Elk Grove Village Elmhurst Elmwood Park Evanston Glencoe Glenview Harwood Heights Hoffman Estates Kenilworth Lincolnwood Morton Grove Mount Prospect Niles Norridge Northbrook Northfield Park Ridge Rosemont Schaumburg Schiller Park Skokie Wilmette Winnetka