Residential proxy use as their IP-addresses from house owners provided by Internet providers. These proxy IP addresses look the same as standard residential IP addresses. Residential proxy is always linked to the physical address, but they may still be used by the Owner (resident), so there are limitations in time for using such proxy.
On the other hand, residential proxies are IP addresses tied to a physical address (mostly home addresses – hence, residential).
Specifically, they were issued to homeowners by ISPs. It means they can easily be traced, and since they are traceable, many websites trust and consider them as legitimate.
For this reason, a residential proxy is a far better alternative when looking to access a site anonymously, with fewer chances of getting blocked.