During my many years of reporting and writing about real estate trends and other finance topics, including mortgage rates and the housing market in general, I’ve recognized the importance of paying close attention to numbers and statistics that wildly diverge from economic norms.
Real estate technology firm Zillow recently found and revealed one such fact.
“A near-record (and rising) share of homeowners are turning their unsold properties into rentals,” Zillow wrote. “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 the market continues to rebalance, sellers are facing a different reality than they did a few years ago,” said Kara Ng, senior economist at Zillow. “Bargaining power is tilting toward buyers and homes are taking longer to sell, making renting out a property one way to buy time rather than compete aggressively on price.”
“After all, today’s sellers are rarely forced to sell, and it appears they are often unwilling to budge off of what their heart says their home is worth,” she continued.
Related: Redfin, Zillow reveal major mortgage rate, housing market change
The measure swings sharply with the seasons and usually hits its high point in November, when many potential sellers give up as the buying season winds down.
Zillow’s latest reading from October 2025 reached 2.3% — matching the October peak set in 2022 — and the all‑time high of 2.4% from November 2022 is now within striking distance.
Mortgage rates reach 7-month highs
March has been a rough stretch for mortgage rates, and since March 11, they have delivered some of the sharpest increases of the month.
“During that time, our daily rate index went from 6.09% on Tuesday to 6.41% today — the highest since September 4th, 2025,” wrote Mortgage News Daily. “While that’s certainly not the fastest jump we’ve seen, it’s the worst 3-day stretch since early April, 2025.”
“Mortgage rates are driven primarily by movement in the bond market,” wrote Matthew Graham, Mortgage News Daily’s chief operating officer. “Like several other asset classes, bonds have not been happy about the Iran war.”
“This is counterintuitive for those who expect bonds to serve as a safe haven in times of uncertainty, but when war has a direct impact on inflation expectations, it’s more than enough to offset any of the safe haven benefit that might otherwise be seen.”
More on mortgages, housing market:
- Zillow sounds alarm mortgage rates, housing market
- Berkshire Hathaway HomeServices predicts housing market pivot
- Redfin sends strong message on mortgage rates
Sam Khater, Freddie Mac’s chief economist, notes that homebuyers are still moderately in the market.
“Despite the modest uptick, buyers are responding to rates in this range, with existing-home sales increasing 1.7% in February,” Khater wrote. “Purchase applications also increased this week, a welcome sign as buyers enter spring homebuying season with rates down more than half a percentage point compared to the same time last year.”
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Zillow reveals metros with highest and lowest share of accidental landlords
The metros with the most accidental landlords are generally those where the buyer pool is thinner. Zillow’s Market Heat Index shows these markets leaning toward buyers: listings sit longer and sellers are more likely to trim prices. Notably, seven of the top 10 are in Texas or Florida.
Metros with the highest share of accidental landlords
- Denver (4.9%) — Denver has the largest share of accidental landlords among major metros.
- Houston (4.2%) — Houston follows closely, with a sizable portion of homeowners renting out properties unintentionally.
- Austin (4.1%) — Austin also shows a high rate of owners who became landlords by circumstance rather than choice.
- San Antonio (3.9%) — San Antonio’s share is similarly elevated, reflecting softer buyer demand.
- Portland (3.7%) — Portland has a notable concentration of accidental landlords.
- Tampa (3.7%) — Tampa matches Portland, with many owners renting out homes they initially meant to sell.
- Miami (3.5%) — Miami’s share remains well above the national average.
- Dallas (3.4%) — Dallas also sees a significant number of homeowners renting out properties unexpectedly.
- Jacksonville (3.3%) — Jacksonville’s share is slightly lower but still among the highest nationally.
- Nashville (3.2%) — Nashville rounds out the top 10 with a substantial accidental‑landlord presence.
(Source:Zillow)
Metros with the lowest share of accidental landlords
- Providence (0.6%) — Providence has one of the smallest shares of accidental landlords in the country.
- Boston (0.6%) — Boston matches Providence with an equally low rate.
- New York (0.7%) — New York also sees very few homeowners renting out properties unintentionally.
- Hartford (0.8%) — Hartford’s share remains well below 1%.
- Buffalo (0.8%) — Buffalo shows a similarly low rate of accidental landlords.
- Milwaukee (1.2%) — Milwaukee’s share is modest but slightly higher than the Northeast metros above.
- Chicago (1.3%) — Chicago has a relatively small portion of accidental landlords.
- Philadelphia (1.4%) — Philadelphia’s share remains low compared with most large metros.
- Cleveland (1.5%) — Cleveland’s rate is still among the lowest nationally.
- Richmond (1.5%) — Richmond ties Cleveland with a similarly small share.
(Source:Zillow)
Related: Zillow predicts mortgage rate, housing market change
