More home sellers turn into "accidental landlords"
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More San Diego home sellers are becoming what Zillow calls "accidental landlords" — 1.9% of rental listings on its platform in October were previously for sale, according to the real estate site.
Why it matters: As buyers gain leverage and homes take longer to sell, a growing share of homeowners are renting their properties out instead.
By the numbers: Nationwide, 2.3% of homeowners fall into the "accidental landlord" category. That's the highest level since late 2022, when mortgage rates topped 7%.
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: San Diego's share falls squarely in the middle of large metros.
- Texas and Florida had seven 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%).
Accidental landlords are most common in softer markets with more price cuts, Zillow found.
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.
Between the lines: Accidental landlords also add homes to the rental pool, which can ease rent prices.
- San Diego's median rent for a two-bedroom dropped 7.5% since last year, per KPBS.
What we're watching: Whether sellers who pulled listings last year have better luck as they try again. Redfin reports that many have relisted.