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What Is a Duplex?

Learn what makes a duplex different from a townhouse, and the pros and cons of buying or renting one.

Written byJoe Seifi|January 6, 2022

A duplex is made up of two individual residences on one shared plot of land. Generally, one person will buy a duplex and then rent out the other unit to earn additional rental income. Because a duplex has a single owner and two separate living spaces, duplexes are extremely versatile and often considered a good investment.

According to the Zillow Consumer Housing Trends Report 2021, approximately 5% of renters that moved in the past year said they moved into a duplex or triplex, and about 2% of homeowners said they own such a home.

If you're planning on buying or renting a duplex, here's what to know:

What does a duplex mean?

A duplex is a multifamily home that sits on a single plot of land with two units separated by a wall or floor. Units are either side-by-side like in a townhouse or condominium, or stacked on top of one another like an apartment. The floorplan below is an example of a side-by-side duplex house.

While the above definition is more commonly used to describe a duplex type house, the description may vary in a few big cities like New York and downtown Chicago. For example, a duplex apartment in New York City is defined as a single-family apartment having rooms on two floors that are connected by an internal stairway or elevator. Typically, a duplex apartment in New York City must also have a minimum ceiling height of 8 feet as you'll notice from the floorplan pictured below.

What does a duplex look like?

A duplex is designed to look like one large house and feel like a single-family home. The two sides are typically mirror images and of equal size with their own entrance and exit. Parking is either shared or separate in a garage or paved spot. Common areas like a backyard or patio may be shared as well or sub-divided between the two units.

Size: The average duplex in the U.S. is around 900 square feet.

Floor plan: The floor plan of the two units may be identical or vary in style, layout and finishes.

Style: Duplex houses come in a broad range of housing styles and may vary depending on the location.

Cost: Multi-family duplexes are often seen as a more affordable option in comparison to a single-family home. However, duplexes in areas of New York can often be some of the most expensive properties available.

Location: Duplexes are most commonly found in college towns and densely populated areas like large cities.

What makes a duplex different from other types of homes

A duplex is often confused with a few different types of homes because of the way it looks. While a duplex may share some similar characteristics, who owns the home and the number of units in the building can signify what makes a duplex different.

Duplex vs multifamily apartment: A duplex includes only two units that are both owned by one individual, whereas an apartment includes multiple units within a residential building that are typically owned by a property management company.

Duplex vs condo: The owner of the duplex has full ownership over the structure and the land it's on, whereas a condo owner may own one or several units within a condominium and have shared ownership over the common areas.

Duplex vs townhouse: A duplex has one owner with two residences that occupy a singular lot and share a common wall or floor. A townhouse may include two or several properties in a row that share both side walls or one wall if located on the end. Each townhouse occupies its own land and is individually owned.

Duplex vs twin home: A duplex is two properties that share a wall or floor on a single lot, whereas a twin home is two properties divided by a communal wall on two separate lots.

Duplex vs triplex: Triplexes and fourplexes are similar style multifamily homes and really the only thing that makes them different from a duplex is the number of residences. A triplex has three and a fourplex has four, hence the name.

Pros and cons of living in a duplex

Like any other type of house, duplexes come with their own trade offs whether renting or buying. Weigh the pros and cons of each to consider if a duplex is the right type of home for you.

Pros

Renting	Buying
Typically more affordable to rent than a single-family home.	Opportunity to earn additional rental income that can be used to cover some or all of the mortgage payment.
Offers similar conveniences to a single-family home like a yard and parking.	More privacy than a condo or townhouse.
May have more privacy than an apartment.	Conventional mortgage financing available.
	The extra unit can be used to house extended family while still maintaining some level of privacy.
	Opportunity to become a real estate investor and build equity at the same time
	Potential tax benefits / deductions if renting out half or both units of the duplex
	Ownership of the units may be able to be subdivided.

Cons

Renting	Buying
May be required to do some outdoor maintenance like yard work or snow shoveling	May share a backyard, patio or parking with your tenant if living in one unit and renting out the other.
Don't have as much privacy as you'd get from a single-family home.	May have less privacy than a single-family home if renting out the other unit.
Probably won't have access to apartment-style amenities.	May not have separately metered utilities.
May have to share laundry, a driveway or other common areas with the other tenant.	Typically only found in more urban areas.
	Potentially higher down payment costs.

Is a duplex right for you?

Duplexes are often considered more economical to buy because they're essentially two homes in one. The owner of a duplex may live in one of the units and rent out the other, which makes it ideal for first-time investors, roommates or families who want to live near relatives.

Like a single-family home, a duplex can be financed through a conventional mortgage, FHA loan or VA loan. Keep in mind, however, that the down payment requirements for a two-unit property with a conventional mortgage may be higher at around 15-25% — depending on whether you plan to occupy the duplex.

The cost of renting a duplex is usually on par with an apartment or house in the same area that has the same number of rooms. For this reason, it can often be more advantageous to rent an entire house vs a duplex — unless of course you like the idea of having someone close by for comfort.

Find a duplex for sale near you.