Homeowners are increasingly turning their properties into rentals, and a new report from Zillow says that the trend may not have even peaked yet. 

According to the report, 2.3% of homes listed for rent on Zillow were recently listed for sale, just below the six-year high of 2.4% recorded in November 2022.  

Detached single-family homes are said to be the most common property type owned by these “accidental landlords,” referring to those who rent out a property after failing to sell it. Renting out a property is reportedly one way that homeowners can buy time instead of competing aggressively on price as the market shifts toward buyers. 

Single-family homes accounted for 3.4% of rental listings that were previously listed for sale, compared with 2.2% of townhomes and 1.1% of condominiums. 

The report also found that certain markets are seeing the trend more than others. Denver had the highest share of homes switching from the for-sale market to rentals at 4.9%, followed by Houston, Austin, San Antonio, Portland, Tampa, Miami, Dallas, Jacksonville and Nashville. 

The rise in accidental landlords shows that most homeowners are not under financial pressure to sell, and Zillow forecasts that home values will rise in more markets in 2026. 

“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.”