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Short version: NVR (Network Video Recorder) records footage from IP cameras that digitize and transmit video themselves, typically over a single PoE Ethernet cable carrying both power and data. DVR (Digital Video Recorder) records footage from analog cameras that send a raw video signal over a coaxial cable, with the recorder itself doing the digitizing. For a new home system built today, NVR is the more common and generally the better recommendation — higher resolution ceilings and simpler cabling — but DVR kits remain the cheaper entry point and are still a legitimate choice on a tight budget.

How NVR and DVR Actually Differ
The core difference is where the video gets digitized. An IP camera (used with an NVR) has its own image processor and converts the video to a digital signal inside the camera itself, then sends that digital stream — usually over Ethernet — to the NVR, which simply stores and manages it. An analog camera (used with a DVR) sends a raw, undigitized video signal down a coaxial cable to the DVR, which does the analog-to-digital conversion and recording itself.
This single difference cascades into most of the practical distinctions buyers actually notice: cabling, resolution ceiling, and how the system expands over time.
Cabling: PoE Ethernet vs Coaxial
NVR/IP systems typically run on Power over Ethernet (PoE) — a single Ethernet cable carries both the video data and the power to run the camera, which simplifies installation to one cable run per camera. DVR/analog systems need a coaxial cable for video plus a separate power cable to each camera (or a combined "siamese" cable bundling both), which is a slightly bulkier and more traditional wiring approach. For a new install, PoE’s single-cable-per-camera simplicity is a real practical advantage.
Resolution Ceiling
IP/NVR cameras generally support higher resolutions — 4K and above is common on current NVR systems, including the Reolink RLK8-800D4 reviewed on this site. Analog/DVR cameras have historically topped out lower, though current-generation analog formats (sold under names like "3K Lite" or "5MP Lite" in current DVR kits) have narrowed that gap considerably from the original analog standard. If maximum resolution and detail at range matters most, NVR remains the stronger category.
Expanding the System Later
Both system types support adding more cameras up to the recorder’s channel count (see our NVR buying guide for choosing a channel tier), but NVR/IP systems are generally considered easier to expand incrementally since PoE cabling is more standardized and camera compatibility across brands within the IP/ONVIF standard is broader than analog compatibility tends to be.
Which One Should You Choose?
For a new home system with no existing wiring, NVR is the more common recommendation today — higher resolution ceiling, simpler single-cable-per-camera installation, and a wider compatible camera market. Choose DVR specifically if budget is the deciding factor and a lower entry price matters more than resolution, or if you are adding cameras to an existing analog CCTV installation rather than starting from scratch. See best CCTV cameras for home for real DVR-based kits, or the best security camera systems roundup for NVR-based options.