A New Trend Reshaping the Rental Market
Over the past year, a new trend has been quietly reshaping the rental housing market — the rise of the accidental landlord.
As mortgage rates remain high, many homeowners who would have sold their properties are choosing to rent them out instead. Rather than giving up their low 3% mortgage, they’re holding onto their homes and turning them into investment properties, often unintentionally.
These “accidental landlords” are increasing rental supply in certain markets, especially suburban and mid-tier neighborhoods. However, this influx of first-time landlords is creating mixed effects on rental prices and competition.
High demand and population growth continue to push rents upward, and renters are benefiting from higher-quality housing options as owners list well-maintained primary residences for rent.
More available homes mean slightly softer rental prices and longer vacancy times, especially for mid-priced single-family rentals.
What This Means for Landlords & Investors
- Competition is growing. Pricing and presentation matter more than ever.
- Tenants have more choices. Well-managed properties stand out in the crowd.
- Opportunities are emerging. Investors can acquire from overwhelmed accidental landlords looking to sell later.