what is residential real estate

Residential real estate refers to property, including land and buildings, that is developed specifically as a place for people to live. It is the most common type of real estate and is typically defined by local zoning ordinances, which restrict the use of residential areas for commercial or industrial purposes. Residential real estate encompasses various types of homes, from single-family houses to apartments. Purchasing residential real estate is often the largest and most important financial investment a person makes in their lifetime. Its value is determined by many factors, including size and location, and is subject to shifts in the market. Some individuals invest in residential real estate as a money-making venture, either by flipping it for a profit or renting it out to tenants. However, most people simply live on their property. Commercial real estate, on the other hand, is used for business purposes, such as office buildings, retail spaces, and warehouses.