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In 1983, a system was created to locate buildings more precisely. A standard zip code coupled with the four extra zip code numbers can now be used to designate specific streets, buildings, houses or businesses.

Most postal codes are shared by several buildings. Only very crowded buildings, such as large apartment buildings or big offices, have their own postal code. The postal code is good for an area or street? Each postal code is for specific grid .

These last 4 digits represent specific delivery routes within delivery areas. This extra detail means an even more precise matching to a more granular level. It could represent a handful of houses on one side of a street, or even a single building that receives a high volume of mail.

Each postcode covers an average of about 15 properties. However, this is not a definitive number, where postcodes can hold up to 100.

This is because ZIP code boundaries are based on mail routes and delivery points rather than geographic factors. The U.S. Post Office Department, predecessor to USPS, developed a zoning address system in 1943 as a way to make sorting and delivery of mail easier.

Postal codes in Canada change at every block and are assigned to all street sides. Even two next-door neighbours might have different postal codes owing to this reason. Businesses that receive a lot of mail every day are likely to have their own postal codes.

Not only can a street be in different zip codes; but buildings can and do have multiple zip codes by floor, suite, company, or any division that produces significant mail for sorting, bundling, and delivery. Zip codes are not for defining geographic locations but logistics and delivery efficiency.