‘Accidental Landlords’ Hit Near-Record Levels — 1 Stock to Buy, 1 to Avoid

Home prices remain elevated and mortgage rates hover near 6%, so many would-be sellers list their houses only to watch them sit. When offers fall short of expectations, a growing number simply pull the listing and rent the property instead. Zillow (NYSE:Z) released a report last month showing this “accidental landlord” trend has climbed to the second-highest level on record.

According to Zillow Research, 2.3% of homes listed for rent on its platform in October had previously been listed for sale. Only once in Zillow’s nearly six-year tracking has the share been higher. The current figure matches the October 2022 high and trails only the November 2022 peak of 2.4%. 

The shift appears strongest in buyer-friendly Sun Belt and Western markets. Denver leads at 4.9%, followed by Houston at 4.2%, Austin at 4.1%, San Antonio at 3.9%, Tampa at 3.7%, and Miami at 3.5%. Seven of the top 10 metros sit in Texas or Florida. Detached single-family homes make up the bulk, with 3.4% of single-family rental listings now coming from accidental landlords.

Zillow senior economist Kara Ng called the trend “choice-driven rather than shock-driven.” Sellers rarely face forced sales, and just 4.1% of homes carry values below their last sale price. Many homeowners simply refuse to accept lower offers after rates more than doubled from pandemic lows. As it happens, Redfin and FHFA data confirm that 21.2% of outstanding mortgages now carry rates of 6% or higher as of Q3 2025, slightly ahead of the 20% still locked in below 3%.

That lock-in effect, combined with longer listing times and more price cuts in certain markets, keeps inventory tight for buyers while adding single-family homes to the rental pool. Single-family rents rose just 2.6% year-over-year recently, the slowest pace in Zillow’s records. It’s going to get worse. Zillow forecasts growth will slow further to 1.8% for the year — among the slowest rates on record.’

Two stocks sit on opposite sides of this dynamic. Let’s see why Invitation Homes (NYSE:INVH) can profit from the accidental landlord trend and why investors should avoid Opendoor Technologies (NASDAQ:OPEN).

Invitation Homes (INVH)

Real estate investment trust (REIT) Invitation Homes owns and operates one of the largest portfolios of single-family rental homes in the country. The company focuses on suburban properties in high-demand Sun Belt markets — many of the same areas seeing elevated accidental-landlord activity.

More rental supply from individual homeowners can create short-term competition and help cool rent growth. Yet Invitation Homes benefits from scale, professional management, and the ability to maintain high occupancy even when individual landlords struggle with maintenance or tenant issues. The REIT’s portfolio generates steady cash flow that supports a reliable dividend.

Today, Invitation Homes trades at a P/E ratio of 28 ,with trailing earnings of $0.96 per share. The annual dividend stands at $1.20 per share — up 3.4% from the year before — delivering a yield of approximately 4.4%. Revenue for the trailing 12 months reached $2.72 billion

Compared with smaller or less diversified rental operators, Invitation Homes offers institutional-grade operations that appeal to investors seeking housing exposure without direct landlord headaches. When all is said and done, persistent affordability challenges keep many Americans renting longer, and Invitation Homes holds a strong position to capture that demand.

Opendoor Technologies (OPEN)

Opendoor Technologies operates an iBuying model. It makes instant cash offers on homes, completes light renovations, and resells them quickly. The business depends on steady transaction volume and motivated sellers willing to trade speed for convenience.

The rise in accidental landlords directly reduces that seller pool. Homeowners who once might have accepted an Opendoor offer now choose to rent instead, keeping properties off the for-sale market. This dynamic worsens an already low inventory environment and slows overall home sales activity.

Opendoor reported trailing 12-month revenue of $4.37 billion, down from $5.15 billion the prior year. The company posted a net loss of roughly $1.3 billion for the period, with earnings deeply negative at approximately $1.70 per share.

Granted, Opendoor has tightened operations and focused on higher-quality markets, but the core challenge remains: fewer homes coming to market hurts acquisition volume. In short, anything that encourages sellers to hold and rent rather than transact creates a structural headwind for the iBuyer approach.