Homeowners Are Refusing to Sell—And Are Becoming “Accidental Landlords” Instead

For years, selling your home before buying another was the expected next step. But that pattern is starting to shift, and more homeowners are holding onto their properties instead of letting them go.

Realtor.com highlights a growing trend: homeowners choosing to rent out their previous homes rather than sell, especially if they locked in ultra-low mortgage rates during 2021 and 2022.

For many, the decision comes down to math. Giving up a mortgage rate as low as 2–3% and trading it for today’s much higher rates simply doesn’t make financial sense. Instead, renting allows them to hold onto that low-cost debt while generating monthly income.

And it’s not just a small trend. New data from Zillow shows a growing share of homeowners are doing exactly this, turning homes they couldn’t sell, or didn’t want to sell, into rental properties. In fact, homes owned by these so-called “accidental landlords” now make up a near-record portion of the rental market.

Why More People Are Renting Instead of Selling

One of the biggest drivers is today’s housing market itself. Homes are taking longer to sell, and in many cases, sellers aren’t willing to lower their asking price just to close a deal.

Rather than accept a lower offer, some homeowners are choosing to rent the property and wait. As Zillow notes, this approach gives sellers more flexibility, allowing them to “buy time” rather than compete in a softer market.

At the same time, rental demand remains strong, making it even more appealing to hold onto a property.

Related: States Where Young Adults Are Most Likely to Live at Home — California and New Jersey Top the List

The Low Mortgage Rate Effect

Another major factor is what some are calling the “golden handcuff” effect of low mortgage rates.

Homeowners who secured rates under 4% are in a uniquely advantageous position. Renting out the property allows them to continue building equity while potentially bringing in enough rent to cover the mortgage and sometimes more.

This setup can even help offset the cost of a new home, making it easier for some buyers to move up without fully letting go of their first property.

Not Everyone Planned to Be a Landlord

What makes this trend unique is that many of these homeowners never intended to become landlords in the first place.

Some are relocating for work, others are upgrading homes, and some simply don’t want to sell in the current market. In many cases, renting is more of a practical decision than a long-term investment strategy.

But once that choice is made, the responsibilities are very real: managing tenants, handling repairs, and navigating legal requirements.

The Bottom Line

The rise of accidental landlords reflects a changing housing market and a shift in how homeowners think about their properties.

Instead of viewing a home as something to sell and move on from, more people are treating it as a long-term asset they’re not ready to give up.

And as long as mortgage rates remain high and home prices stay uncertain, this trend may continue to grow.

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