Residential Construction

Written by LetsBuild

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Residential construction is different than commercial construction, because these buildings are used for people to live in instead of working in. While many people think that single family homes are residential construction, the category also includes multi-family homes, apartments, condominiums, and even mobile homes.

For each residential construction project, a piece of land is purchased, cleared, and graded. The drainage and other features are added and then the construction of the building takes place. Once the home is finished, a person moves in and the contractor moves on to their next project.

This type of construction is quite lucrative right now, which means that contractors need to keep everything moving forward or they risk losing out on future projects. They need to continuously look for new land, always keep a list of qualified workers on hand, know where they can find materials at competitive prices, and have enough money to cover all their costs until each home is finished.

Some contractors prefer to work on one type of residential construction over the others, just like some homeowners prefer one type over the other.

Here are the main types of residential construction, as well as the pros and cons of each one:

Single Family Homes

Single family homes are often found in neighborhoods or out in the country. These homes can have small yards, or enough green space to include a few farm animals, depending on where they are located. It is possible for people to create the home of their dreams when they construct a single-family home, because they are not restricted to what their neighbors want. These homes always sell for more than a condo or townhome, which may not be helpful for a purchase, but it is definitely a plus when it comes time to sell. The only downside to one of these residential construction homes is that they can cost a lot to maintain and the owner is responsible for all the costs.


Condominiums, or condos, are often found in cities, but they can be in smaller towns as well. Many homeowners prefer to own one of these residential construction homes, because they have lounge areas, pools, gyms, and many other amenities that single-family homes do not have. These types of residences often come with HOA fees, which are homeowner’s association fees, and they cover the costs of maintaining the pool, the hallways, and any other maintenance that is needed in the building or around the grounds. There are certain repairs that won’t be covered by the current HOAs, which means that owners are responsible for sharing the costs of those repairs.


Townhouses are a combination of single-family homes and condos, where they offer some privacy and not a ton of maintenance. A few townhomes will have HOAs, but they are still more affordable than most single-family homes. The only downside to owning a townhome is that there are not all the extra amenities like a condo has.

Multi-Family Homes

There are not too many multi-family homes constructed each year, but that doesn’t mean that contractors will not build them when they get a request. These residential construction units are often used as an investment, which is why some contractors will build them to earn a little extra money for their own investments. If these units are rented out, the owner is responsible for the maintenance, and that is the reason why many people will rent them instead of purchasing them. The best part of these homes is that more than one generation can live in them yet have their own personal space at the same time.

Surprisingly, garages and many outbuildings are considered part of residential construction too. That means that residential contractors are busy with constructing new garages, sheds, and any other building a person wants on their property. Of course, it may be necessary for contractors to utilize subcontractors for these buildings, as many of them will have electricity, plumbing, and other items that need to be installed by a professional who does that specific type of work.

Most residential construction buildings are type 1A, V-A, and V-B. Each one of these types explains what the building is made from and how protected that building will be during a fire. Obviously, contractors will want to build the safest residential building that they can, so that they will be known for keeping their homeowners safe.

Materials that are used during residential construction are constantly improving and contractors need to keep up with these changes, so that they can provide the best homes to everyone. This means that contractors are continuously learning and adapting their business accordingly.