More home sellers turn into "accidental landlords"
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More U.S. home sellers are becoming what Zillow calls "accidental landlords" — 2.3% of rental listings on its platform in October were previously for sale, according to the real estate site.
Why it matters: That's the highest level since late 2022, when mortgage rates topped 7%. As buyers gain leverage and homes take longer to sell, a growing share of homeowners are renting their properties out instead.
The fine print: These homes were listed for sale on Zillow for at least two weeks, then delisted and relisted as rentals within three months of being off the market.
- The trend typically peaks in the fall because home sales slow around the holidays, per Zillow.
Zoom in: Accidental landlords are most common in softer markets with more price cuts, Zillow found.
- Texas and Florida had 7 of the 10 metros with the highest shares of accidental landlords, while Denver led at 4.9%.
- Shares were lowest in the Northeast and Midwest markets, including Boston (0.6%), New York (0.7%) and Chicago (1.3%).
The big picture: Charging rent may help homeowners cover their mortgage payments, especially those with low rates.
- But being a landlord isn't easy — and costs can pile up, from repairs to property management fees.
- "I kind of wish that I'd sold and moved on," said a Maryland condo owner, who told the Wall Street Journal he'd relocated for work and was reluctant to sell at a loss.
Between the lines: Accidental landlords also add homes to the rental pool, which can ease rent prices.
- Single-family rents rose 2.6% in February from a year earlier, the slowest annual growth in Zillow data going back to 2015.
What we're watching: Whether sellers who pulled listings last year have better luck as they try again. Redfin reports that many have relisted.
