What typically characterizes multifamily housing?

Multifamily housing is characterized by residential buildings that contain multiple living units within a single structure or multiple buildings within a common complex. This type of housing includes apartments, condominiums, and townhomes, which are designed and built to accommodate several families or individuals living separately but within close proximity.

The distinction is important because multifamily housing plays a significant role in urban planning and housing availability, providing options for people who may not be in the market for single-family homes. This type of housing caters to various demographics, including families, students, and individuals seeking affordable living arrangements.

The other options do not accurately define multifamily housing. Single-family homes built on large lots represent detached residential properties, commercial real estate is focused on business operations rather than residential living, and hotels or short-term rental properties are typically meant for temporary stays rather than long-term residences.