Street view of a single family home for sale

The Many Types Of Home Zoning

REALTOR® Tips

There are a few different types of zoning for homes, and for most potential buyers, it won’t have much of an impact whether you know them or not. But one reason it can be relevant to know which you are getting is knowing the impact it has on price. For most home buyers looking for a home for their family, you will be getting a single-family home. The reason for this is because multi-family and mixed-use development (explained below) zoned properties are more desirable for investors. And because of that fact, the prices that they end up going for are considerably higher than single-family homes. Mainly, it all comes down to what is the best use for that property.

Single-Family Homes

A Single-Family Home simply means that one building is allowed to be made on site, and depending on the city, for renters it means that no more than 2 unrelated people may live there. But for a family (hence the name single-family), it is perfect. And because of the fact that one home is considered the “best use” (the use which is the most valuable to the landowner), it is priced more reasonably. In addition, there is a lot more variety in the options for home buyers.

Multi-Family Properties

Multi-Family Properties do not have the same restrictions on unrelated occupants that single-family properties do nor the restriction on a single property on the land. This means the best use for the property is generally a duplex, quadplex, or an apartment. This means that homes zoned as multi-family are more expensive, since they’re more attractive to investors than single-family homes are. So generally, families will avoid these. But for investors, they’re perfect since they do not have any city ordinances preventing multiple tenants, and they’re far easier to rent out or use creatively. Condominiums are also generally listed as multi-family, but condos are sold individually, even if they’re built apartment or townhouse style. Townhomes (not just condo style townhomes) are also normally zoned as multi-family.

Mixed-Use Development

Mixed-Use Developments are by far the most expensive. For renters or buyers, living in a property like this makes little sense. That is because mixed-use developments can be used for commercial or residential purposes. Whereas a 3 bedroom single-family home may go for $1,200-1,600 per month, a mixed-use 3 room property could go for as much as $2,500 to 3,000 per month. The best use for these is short-term rentals or commercial use properties such as a restaurant or an office/organization’s work space. The price will correlate to those users. But for someone looking to purchase their own property for their business, you would be allowed to live upstairs or in the back of the property, meaning for business owners a property like this might actually make sense in this context.

This should help you understand some of the basic zoning classifications, and simplify the home buying process for you. For more information about finding homes for sale in San Marcos, TX, contact The Damron Group REALTORS to speak to a professional.

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