Key findings: 

• 2.3% of homes listed for rent on Zillow were previously listed for sale, according to a new Zillow analysis. Only once in Zillow’s nearly six-year record has the share of “accidental landlords” been higher nationwide — in November 2022. 
• Texas and Florida markets, along with Denver, Portland and Nashville, have the largest share of these accidental-landlord properties. 
• Would-be sellers resorting to renting instead of accepting a serious price cut indicates these homeowners don’t need to liquidate distressed properties.

 A near-record (and rising) share of homeowners are turning their unsold properties into rentals. Properties owned by these “accidental landlords” account for more of the listed rental stock than at any time since 2022 — and the trend may not have peaked yet. 

As bargaining power tilts toward buyers and homes take longer to sell, renting out a property is one way for homeowners to buy time rather than compete aggressively on price. Despite home values holding flat over the last year nationwide and declining in roughly half of the 50 largest metros, sellers are rarely forced to sell. Because homeowners who bought or refinanced when rates were at or below 3% have relatively inexpensive mortgage payments, renting out a home at a price high enough to cover those is a distinct possibility for many. With buyers gaining negotiating power in today’s market, sellers who are unable to secure their preferred price are increasingly turning to the rental market, at least temporarily.  

The current high-water mark for failed sales turned rentals was set in November 2022, when 2.4% of the rental stock on Zillow was made up of homes that owners were unable to sell. Mortgage rates had more than doubled since the start of that year, skyrocketing from 3.11% to 7.08% by the end of October. Sellers were scrambling to adjust to a shocking new market paradigm in which buyer purchasing power had been nearly halved in mere months. Today’s trend is choice-driven rather than shock-driven. 

The metric is highly seasonal and typically peaks in November, when would-be sellers commonly lose hope at the close of the home-shopping season. Zillow’s most recent data from October 2025 matches the past October high of 2.3% from 2022, and the past record high of 2.4% from November 2022 is well within reach. 

Major metros with the highest share of accidental landlords tend to be places where there’s less competition among home buyers. These places trend toward being more buyer-friendly on Zillow’s Market Heat Index, for-sale listings generally linger longer, and price cuts are more common. Of the top 10, seven are in Texas or Florida. 

* These metros were among Zillow’s 10 hottest markets for 2026.

Conversely, metros with the lowest share of for-sale homes turned rentals are in places where competition for for-sale homes is the hottest. Among the bottom-10 metros for accidental landlords, eight are in Zillow’s list for hottest housing markets for 2026 — only Chicago and Cleveland are not. 

Detached single-family homes are the most common property type owned by an accidental landlord — 3.4% of single-family homes listed for rent on Zillow are owned by accidental landlords. That’s compared to 2.2% for townhomes and 1.1% for condos. But the share of condo landlords in this situation has risen the most compared to the average of the previous five years. With a lower entry price making them less sensitive to interest rates, condos did not have the same run-up in accidental landlords as detached single-family homes did in 2022. However, they did see a larger spike in the first year of the pandemic when the perceived risks of high density and the proliferation of remote work sapped buyer demand in urban areas.

The rise of would-be sellers turning into accidental landlords rather than selling for a loss — or at least a lower price than they are willing to accept — is a good indication that homeowners aren’t selling out of necessity or because they are at risk of foreclosure. Recent Zillow research found that while more than half of homes lost value over the previous year, the vast majority of homeowners are ahead on their investment. Only 3.4% of new listings were priced below their previous sale price, as of October 2025. Even in areas where home value declines were more common, these homes that had lost value since their previous sale were less likely to be listed than other homes. This suggests that sellers are rarely being forced into distressed sales, and are instead often selling from a position of financial strength. 

What it means for home buyers, sellers, renters and homeowners: 

• Buyers: 
  • More sellers are choosing to rent rather than lower their asking price, effectively putting a floor under negotiations. While buyers have gained negotiating leverage in many markets, not every seller is willing to accept a discounted offer.
• Sellers: 
  • In a more balanced market, pricing and exposure matter more. Listing on the MLS ensures broad visibility to buyers. 
• Renters: 
  • An influx of former for-sale homes into the rental market may expand options, particularly single-family homes. However, accidental landlords may be navigating rental regulations and property management for the first time. Renters can learn more about their rights and protections at https://www.zillow.com/learn/renters-rights/.
• Homeowners: 
  • The rise in accidental landlords underscores that most homeowners are not under financial pressure to sell. Zillow forecasts home values will rise in more markets in 2026. 

Methodology

Homes counted as owned by an “accidental landlord” were listed for sale on Zillow for at least two weeks, unsold before being delisted and posted as a rental listing on Zillow within 3 months of being delisted. 

This data is analyzed at a lag to ensure completeness. Because home sales are typically reported weeks after an offer is accepted and this analysis tracks any rental listing that was delisted within the past three months, data would be missing when tracking more recent months.