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Houses might be considered "haunted" if the people living in them died in a tragic way or experienced a traumatic event in the house, which would leave behind a "residual energy" in the space. Conversely, a person who lived in a house for a long time and had a strong positive emotional connection to it may leave behind a lingering presence even after they have died as well. Historic homes are more likely to be haunted because they have seen more significant events. If the house is younger, it is also possible that it was built over a burial site that was previously used, and the concentration of the area was shattered when the graves were disturbed. This scenario could potentially lead to paranormal activity because the property is being disturbed rather than the structure itself.

Former funeral homes are often considered haunted because they were places where death, grief, and emotional intensity were part of everyday life. For decades, these buildings served as the final stop for the deceased, where bodies were prepared, wakes were held, and families gathered in moments of deep sorrow. Many believe that such environments can leave behind residual energy, especially when strong emotions like sadness, shock, or even unresolved trauma are present. In addition, funeral homes frequently handled individuals who may have died suddenly or under tragic circumstances, adding to the idea that some spirits might linger or remain attached to the location. The combination of repeated exposure to death, ritual practices surrounding the dead, and the emotional weight carried within the walls makes former funeral homes a common focal point for reports of paranormal activity.

People often think that old, poor houses are "haunted" because they are more likely to have a tragic history, such as deaths that occurred in the house due to illness, accidents, inappropriate activities, or violence. These locations would also be used to house tuberculosis patients. Tragic events could leave behind "residual energy" that people interpret as ghostly activity. Additionally, the poor condition of these buildings can make people feel uneasy. These locations would be funded by local counties, but most have been closed in the mid-1980s to early 1990s due to lack of funding or reports of inappropriate activity. As a result, many of these abandoned sites have become the focus of urban explorers and paranormal enthusiasts, potentially stimulating the paranormal activity that is housed within.