More Americans Are Becoming ‘Accidental Landlords’
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Key Takeaways
- High mortgage rates and a cooler housing market are leaving more homeowners unable to sell at the price they want.
- This dynamic prompts them to rent out properties instead of cutting prices.
- A near-record share of rental listings now comes from homes that recently failed to sell, with about 2.2% of Zillow rentals comprised of these “accidental landlord” properties.
Americans who can’t get the price they want for their homes are increasingly turning into “accidental landlords,” renting out properties they had hoped to sell, according to a new report from The Wall Street Journal.
A Zillow analysis shows that accidental landlords comprise a near-record share of rental listings. Around 2.2% of rental listings on Zillow in November had first been listed for sale, the highest level since 2022, per the analysis. The rate of accidental landlords was about the same in December.
The rate was higher in markets where unsold listings are gathering dust. Zillow pointed out that Houston had the highest occurrence of accidental landlords in December, at 4.2%. Denver, Colorado; Austin, Texas; and Tampa, Florida followed suit.
More home sellers are becoming accidental landlords due to a mix of high mortgage rates and a cooler housing market, per the Journal. Many current owners locked in or refinanced at rates near 3%. With buyers gaining leverage and listings sitting longer, sellers face a choice: slash the price or convert the home into a rental.
Renting as a last resort
For many of these owners, the choice of landlording is a reluctant Plan B. For example, one South Carolina couple, Jim and Lindy Kennedy, told the Journal that they rented out their unsold home for six months and found it returned in terrible condition, especially the bathrooms.
“The place was a disaster,” Jim Kennedy told the Journal.
He described managing the property as “such a nuisance and a hassle.” After thoroughly cleaning the place, the couple relisted their home in December at a lower price point — and are now intent on selling it.
Becoming a landlord pencils out better for some homeowners than others. If a homeowner has locked in a low mortgage rate, they can often charge enough rent to cover monthly costs. However, if they have a high rate, they could end up having to chip in to make the payment each month, per the Journal.
Another couple, Roderick Conrad and Suvimon Sunakorn, decided to rent out their two-bedroom condo in Silver Spring, Maryland, instead of selling it at a loss last year. The rent they receive only encompasses part of their ownership costs, and they have had to pay for costly repairs to the unit.
“It’s pretty frustrating,” Conrad told the Journal. “I kind of wish that I’d sold and moved on.”
Shivani and Bryce Bailey also own a condo, a three-bedroom property in Dallas. After they attempted to sell it in 2024 and failed to find a buyer, they decided to put it up for rent instead. The tenant they found pays enough rent to cover their monthly ownership costs, they tell the Journal.
Redfin data shows that some of the sellers who pulled their homes off the market last year are now giving it another shot. Around 3.6% of active listings in January had been delisted in 2025, the highest share for any January since 2016, Redfin says.
Key Takeaways
- High mortgage rates and a cooler housing market are leaving more homeowners unable to sell at the price they want.
- This dynamic prompts them to rent out properties instead of cutting prices.
- A near-record share of rental listings now comes from homes that recently failed to sell, with about 2.2% of Zillow rentals comprised of these “accidental landlord” properties.
Americans who can’t get the price they want for their homes are increasingly turning into “accidental landlords,” renting out properties they had hoped to sell, according to a new report from The Wall Street Journal.
A Zillow analysis shows that accidental landlords comprise a near-record share of rental listings. Around 2.2% of rental listings on Zillow in November had first been listed for sale, the highest level since 2022, per the analysis. The rate of accidental landlords was about the same in December.
The rate was higher in markets where unsold listings are gathering dust. Zillow pointed out that Houston had the highest occurrence of accidental landlords in December, at 4.2%. Denver, Colorado; Austin, Texas; and Tampa, Florida followed suit.