Real Estate Finance Practice Exam

The typical structure of multifamily properties is indeed a collection of apartment units. Multifamily properties are designed to accommodate multiple separate housing units within one building or complex, allowing multiple families or tenants to reside in individual apartments while sharing common facilities such as hallways, entrances, and amenities.

This arrangement maximizes the use of land and resources and is an efficient way to provide housing, especially in urban environments where space is at a premium. It offers various unit types, ranging from studio apartments to larger multi-bedroom layouts, catering to diverse tenant needs.

In contrast, a single-family home is a standalone structure designed for one household, which does not fit the definition of multifamily properties. Standalone commercial buildings are used for business purposes rather than residential living, and mixed-use developments may include residential units but combine various uses—such as commercial, retail, and residential—within one project. These distinctions clarify why the collection of apartment units is the most accurate representation of multifamily properties.