The origin of the bungalow has its roots in the Indian province of Bengal. There, the common native dwelling and the geographic area both had the same root word, bangla or bangala. Eighteenth century huts of one story with thatched roofs were adapted by the British, who used them as houses for colonial administrators in summer retreats in the Himalayas and in compounds outside Indian cities. Also taking inspiration from the army tent, the English cottage, and sources as exotic as the Persian verandah, early bungalow designers clustered dining rooms, bedrooms, kitchens, and bathrooms around central living rooms and, thereby, created the essential floor plan of the bungalow, leaving only a few refinements to be worked out by later designers.

Almost inevitably, this economical, practical type of house invaded North America in the late 19th and early 20th centuries. The first American house actually called a bungalow was designed in 1879 by William Gibbons Preston. Contrary to the usual definition, it was a two-story house built at Monument Beach on Cape Cod, Massachusetts. It was probably called a bungalow because it resembled resort architecture.
http://www.americanbungalowmagazine.com/AmBungalow/whatIs.ht...