Understanding the Different Types of Real Estate

Real Estate

The real estate industry is complex and ever-changing. As technology, incomes, and buying habits evolve, it’s important to stay on top of these changes in order to make smart investment decisions. Real estate encompasses a vast spectrum of investments, from residential and commercial buildings to industrial plants and even raw land. Whether you’re looking to buy your first home or add a new property to your investment portfolio, understanding the different types of real estate is essential.

Real estate is property comprised of land and everything permanently affixed to it, such as buildings and structures. It sets itself apart from personal property, which consists of items that can be removed or moved from the land like vehicles and furniture. Real estate also includes air rights above the land and underground rights below it.

Residential real estate refers to buildings designed for housing. This can include single-family homes, duplexes, triplexes, townhouses, bungalows, and condominiums. This type of real estate is either owned by the people who live in the building, or it’s rented out to individuals as an investment property.

Commercial real estate is properties used for business purposes, such as offices, malls, and hospitals. It can also include agricultural and forestry land.

Industrial real estate is land and buildings used by manufacturing businesses for activities like warehousing, transportation, research, and construction. This type of real estate can also include specialized properties like chemical plants and oil refineries.

The data relating to real estate for sale on this website comes in part from the Broker Reciprocity program of OneKey MLS. Real estate listings held by brokerage firms other than OneKey MLS are marked with the Broker Reciprocity logo and detailed information about them includes the name of the listing brokers.

The real estate market is a vital component of the economy. It drives employment, increases consumer spending, and contributes to GDP growth. The industry is regulated and can be lucrative for those who are knowledgeable about its intricacies. The real estate industry also relies on demographic trends to drive demand for housing. For example, as millennials enter the housing market, they may want to move out of cities and into suburbs. This trend was accelerated during the COVID-19 pandemic and could continue into 2023 and beyond.