What Is a Duplex Apartment?

A duplex apartment can retain a house-like feel while being less expensive than a single-family home. The biggest difference between a duplex apartment and a home is that the former has a shared wall between you and the next-door neighbor. But that just might be desirable for you. Perhaps a family member could live there and you could hang out as much as you want while still maintaining separate residences.

But there are other factors to consider when deciding if renting a duplex is the right decision for you. There can be a lot of perks, but there are also some downsides to having such a close neighbor. We’ll walk you through the ins and outs of duplex living and help you decide if this is the best choice for you.

What is a duplex apartment?

The traditional definition of a duplex is a multi-family home consisting of two attached but separate units forming a single property. The apartments are often side by side, but they can also be stacked vertically. Each dwelling might consist of one or two floors, and they will usually have similar square footage. The two units also have separate entrances, but they will usually share at least some of the outdoor space, including driveway, yard, and porches or patios.

A duplex differs from other multi-unit housing, such as condos or townhouses, in that it has a single owner and both of the dwellings are rented out. A savvy investor, however, may choose to live in one unit and rent out the other. This can be a great way to help with the mortgage, perhaps freeing up money for other investments.

Because it offers more privacy, a duplex apartment can be a great alternative to traditional apartment living where you might share walls, a floor, and a ceiling with other units. In a duplex, by contrast, because there are only two separate units, there will only be one common wall, or a shared floor/ceiling.

Advantages and disadvantages of duplex apartments

Let’s take a deeper look at the pros and cons of living in a duplex apartment.

How to finance a duplex apartment?

Buying a duplex apartment can be a smart way to invest in real estate. If you live in one of the apartments, you will typically find it easier to secure financing. If you don’t live in one of the units, getting a mortgage will be a little more challenging. Typically, you’ll need to have a larger down payment and meet more stringent eligibility requirements.

If you need a mortgage to finance an apartment duplex — or any other multifamily property — make sure you compare offers from multiple lenders. The comparison tool below shows mortgage lenders that offer multifamily property mortgages.

Is a duplex apartment right for you?

In the search for your dream apartment, it’s important to first ask yourself a lot of questions about what you’re looking for in your new abode. Do you want some outdoor living spaces? Maybe you like to garden or entertain outside. An apartment complex may not offer much outdoor space at all besides a parking spot — maybe not even that if you live in an urban area.

Perhaps you like the idea of having two floors of your own to separate your indoor space, which is common in duplex buildings. And having an in-unit washer and dryer can also be very convenient, especially if you have a family. Furthermore, maybe you’d like for family to live nearby, but not quite in the same house. Renting a duplex can be great in that regard, too. You’re all in one building, so close enough to visit as often as you like, but you have more privacy and two separate entrances. Close, but not too close.

In some cases, the shared spaces of duplexes will be partitioned off, like the backyard, giving you even more privacy. If all of these aspects of duplex living check your boxes, the perfect duplex apartment might be right around the corner for you!

FAQ

Is a duplex considered a house or an apartment?

It’s really both. A duplex house only has two units, so it has the look and feel of a more traditional home (with one neighbor close by) but is rented out like an apartment.

Which is better, duplex or apartment?

That depends entirely on what you want out of your living space. Sometimes, apartments come with pools, tennis courts, or workout spaces, and that might be exactly what you want. They also come with a lot more neighbors. Duplex apartments only come with one neighbor, more privacy, and a yard.

Is a duplex considered attached or detached?

Actually, a duplex is considered semi-detached. It’s a single residential building with two units that are connected by a common wall or, in some cases, a common floor/ceiling. Because the duplex units have separate entrances, neither unit can be accessed through the other apartment.

Is a duplex more expensive than a house?

Renting standalone houses is usually more expensive than living in duplex apartments. This isn’t always true, depending on where you live, but it’s usually the case. A duplex, however, can be a great middle ground between living in an apartment building versus a single-family home.

Duplex apartment or duplex investment?

Living in a duplex can be a great experience and an excellent alternative to an apartment building. If you don’t mind one close neighbor, it’s a nice way to have more space and privacy.

It could even be a good arrangement if you don’t have to rent. If you have the means to buy a house, or believe you can finance one if you just find the right lender, but you don’t need a whole detached home to yourself, why not look into buying a duplex?

The demand for multifamily housing will likely keep rising as more people find detached homes unaffordable.

You could turn rising rental demand to your advantage by purchasing a duplex and renting out one unit — at least until you decide you need to upgrade to a detached home, if that ever happens. Take advantage of SuperMoney’s advanced search tools and unbiased customer reviews to find the right lender and loan to get your duplex investment off to a good start.