A multi-story building that is primarily used for residential purposes and has separate residential units (apartments), on all or most levels, is referred to as a “apartment building.” The ground and lower floors of apartment buildings may house commercial functions in specific places, such as town and metro centres.

The horizontal division of residential units among different floors is one of the essential aspects that characterise apartment buildings. Apartment buildings can be distinguished from terraced homes by the fact that party walls that are vertical separate the residential units in terraced homes.

Although there is a horizontal separation between apartments, a single apartment can be set up on more than one floor.

Apartments may share parking spaces and outdoor areas. Often, a basement or other underground space serves as the building’s car parking.