What is meant by the term "residential property"?

The term "residential property" refers specifically to properties that are designed and intended for individuals or families to live in. This includes various types of housing such as single-family homes, apartments, townhouses, and condominiums. The primary function of residential properties is to provide shelter and a living environment, distinguishing them from other types of properties that serve different purposes.

Understanding this definition is crucial because it highlights the role of residential properties within the real estate market and how they contribute to communities by providing housing options. This concept is foundational in real estate valuation, as residential properties are assessed differently than commercial or agricultural properties, given their unique purpose and market dynamics.

Other categories of properties, like those used solely for business purposes, commercial buildings, or agricultural land, are classified differently due to their intended use and the type of occupants they serve, emphasizing the importance of recognizing the specific function for each property type within the broader real estate landscape.