There has been a growing trend among homeowners who are unable to find buyers for their properties. In the past, they typically relied on one of three common strategies, such as lowering the asking price, offering additional things, or simply keeping the home on the market longer. However, many of these homeowners have recently begun choosing a different option, becoming what they call “accidental landlords.” In this situation, they decide to rent out their property instead of selling it. As shifting housing conditions continue to affect affordability, this situation has become noticeably more common.

At the end of the pandemic, large investors expanded their reach across the country in search of major development opportunities and regions experiencing rapid population growth. Yet, as the number of active homebuyers has decreased due to rising interest rates and economic uncertainty, many homeowners have found themselves unable to sell. “When the market shifts, those who once planned to sell are now forced to adapt.” This shift has led to the rise of accidental landlords, many of whom are everyday property owners now competing in the rental market against large institutional investors.

This pattern is especially visible in several Sun Belt markets and other growing metropolitan areas. For example, in Houston, around 7% of homes that failed to sell in April were converted into rentals instead. Other cities have seen similar increases, demonstrating that more homeowners across the country are turning to renting when selling becomes financially or practically challenging.

While this trend has grown rapidly, it also presents disadvantages. The real estate market has become increasingly difficult for sellers to navigate. According to an August Realtor.com report, prospective homeowners have decreased by 57% compared to the previous year, showing how many homeowners are withdrawing their listings altogether. As a result, accidental landlords are not entering the rental market by choice, but rather because current housing conditions give them very few alternatives.