Cluster houses are a relatively new yet growing trend in the housing market. In fact, they’re catching fire –figuratively speaking, of course – and some can see why. A cluster house is a single home among a subdivision of homes built closely together, with a shared security fence and common area. 

Much like a row of townhouses or a condominium, owners of a cluster house own their own house and yard, yet also own a percentage of the common area between each house in the cluster, based on how many houses they own. In a community of a hundred cluster houses, the owners of fifteen houses would also own 15 percent of the total common area between the houses, as well. 

In that regard, cluster houses are like a further subcategory of shared property, between townhouses and condominiums, with a direct relation to single-family landed houses like bungalows and the like. 

Like any property, buying a cluster house comes with its fair share of pros and cons. To help you decide whether or not to be interested in this new trend, here are some basic perks and drawbacks when it comes to living in a cluster. 

Closer Community Presence

The first benefit you’ll see is that, much like with townhouses and condominiums, a cluster house will enjoy the benefits of a tightly-knit community and neighbors who interact more with each other. 

These benefits are usually afforded to condominiums and townhouses due to the smaller size of their units and construction as a single community bloc – yet a cluster house can be like any other single-family home, now with the added benefit of getting to know the neighbors better. 

Lower Costs Versus Landed Properties

Because the cost of maintenance is shared based on ownership, the final per square foot cost of a cluster house will be less than that of a solitary single-family landed home, and some luxury condominiums as well. This is important, as house prices have been fluctuating slightly due to the economic downturn, according to stats from the Global Property Guide. You could take another step down and move into a townhouse, but for the benefits that a cluster house accrues, it’s a great new deal – especially for young, growing families. 

Additionally, due to the interest in the market, cluster houses are a great investment. While Trading Economics also reports a decrease in the house price index, cluster homes are becoming popular. As they catch on in more cities and regions and gain more prestige as a way to enjoy single-family home amenities like pools and fitness gyms without most of their costs, the value of cluster homes can increase significantly, making them a great way to make your money work for you.

Shared Amenities

The primary factor that cuts the cost per square foot from one solitary home to a cluster house is the availability of amenities to the community as a shared cost, rather than a single cost within one home. Pools, for example, are extremely expensive to install, and very, very expensive to keep. The pump sucks incredible amounts of power; pool cleaning takes time, manpower and even more power – the list goes on. 

Clearing out the area for a tennis court or basketball court and keeping it clean is another financial feat – and when you consider that tennis and basketball are best played with neighbors anyway, you can see how it’s just a much better investment to have these amenities planned and built in a cluster housing complex rather than a single home. In a cluster house, you can get the benefits of having a pool, a Jacuzzi, a gym and even security guards – but you won’t have to shoulder the costs on your own. 

Lack of Flexibility in Construction

Cluster homes are build close to each other – not close enough to eliminate the potential of a yard like in a townhouse, but close enough that any additions or construction plans will usually fall through. Unless it’s a small addition or change to your house, you’re going to have trouble following through your expansion plans in a cluster house. Just keep that in mind before you make your purchase. 

Fixed Costs Per Units Owned

Maintenance costs are shared based on the number of units in the cluster. For example, the price of maintenance for a pool of the same dimensions in two different places won’t decrease because ten people are using it rather than fifteen, however, since there are less homes to share the cost, the cost per individual owner is larger. 

That’s why bigger cluster communities are generally better – although these can also lead to overcrowded amenities, or simply bigger and thus costlier amenities. 

When looking for a cluster house through online resources like Property Guru, the key lies in balance. Because of that, this perk is also a bit of a downside, depending on what kind of deal you get. If you don’t use an amenity as much as others, well, you’ll still have to pay for it – that in and of itself is also a possible drag.