In 2025, short-term rental (STR) investors showed clear, measurable patterns in where they focused their attention and where capital ultimately closed. By analyzing tens of thousands of Airbnb calculator searches across 3,080 cities throughout all 50 U.S. states on our platgorm, alongside actual closed deals, a consistent picture emerges: investors explored individual markets broadly, but deals are concentrated in a narrower set of regional and leisure-driven markets.
The data reveals emerging Airbnb markets and cooling former hotspots, signaling strategic shifts for investors heading into 2026. By analyzing where and what users searched on Chalet’s free investment tools, we identified key behavioral trends that offer a directional guide for 2026 planning.
Key Takeaways
- Sun Belt and Drive-To Destinations Dominated: Warm-weather Sun Belt states led investor interest in 2025 (Florida, California, and Texas – the top 3 states – comprised 32.5% of all investor searches), with Florida alone representing about 13% of all Chalet user searches, the highest of any state. Drive-to vacation spots (mountains, lakes, and regional beach towns) saw a surge in attention as travelers stuck to closer getaways.
- Investors Buy Where They Search: Even more dominantly, the Sun Belt’s appeal carried through to actual purchases. Florida, Texas, and California were the top destinations for Chalet-assisted acquisitions, collectively accounting for approximately 69% of all STR deals closed on the platform in 2025. Florida alone represented about 30% of closed transactions, reinforcing its position as the nation’s most active STR investment state, followed by Texas at roughly 27% and California at approximately 12%.
- While investors deploy capital selectively, they continue to research broadly: The most-searched individual market accounted for only about 1.8% of total searches. This underscores how widely distributed investor interest was in 2025 – no single city dominated.
- Regional Markets Outshine Big Cities: Secondary “drive-to” vacation markets saw higher engagement rates per listing than major cities, as investors increasingly target regional destinations over traditional urban hotspots.
Chalet users closed 205% more STR property deals in 2025 than the year prior, with big city markets accounting only for 27.3% of all deals closed. - Caution in Regulated Markets: Investor interest cooled in places with strict regulations or oversupply. New York City and Los Angeles each accounted for under 0.2% of searches, reflecting how local bans and permit crackdowns steered buyers away.
- Tech Tools Matter More Than Ever: Data-driven decision making was a key theme. Investors gravitated to analytics and calculators (Chalet saw record usage of its Airbnb income calculator), and in 2026 this trend will accelerate with AI. Chalet’s AI Copilot, launching in early 2026, will bring real-time analysis and automation to investors’ fingertips, cutting research time and boosting confidence in deal choices.
Where Airbnb Investors Were Looking (Search Trends)
In 2025, short-term rental (STR) investors gravitated heavily toward certain regions and market types. By crunching thousands of search queries and submissions on Chalet’s platform, clear patterns emerged about where investor attention surged. Two big winners: the Sun Belt states and classic “drive-to” leisure markets within a few hours’ ride of major cities. Let’s break down each trend.
Sun Belt Steals the Spotlight
Investors used Chalet’s Airbnb calculator heavily in 2025, with demand clustered in familiar STR hotspots. By state, Florida led all others with 12.85% of calculator queries, followed by California (11.02%) and Texas (8.59%). These top three states alone represented about one-third of all search activity. These traditional STR strongholds captured the lion’s share of investor curiosity.
In other words, one in three potential buyers on Chalet’s platform was looking in FL, CA, or TX – a testament to the strong tourism draw and generally friendly STR laws in those states.
Why the Sun Belt? Warm climates and year-round tourism play a big role. Florida offers everything from theme park hubs like Orlando to beach escapes in the Panhandle and South Florida. Texas boasts urban STR markets (Austin, Dallas, Houston) as well as Hill Country and Gulf Coast getaways. Investor-friendly regulations also help, states like Florida, Texas, and Arizona have a reputation for balancing high travel demand with laws favorable to STR owners. This regulatory predictability gave investors confidence to keep funneling money into markets like these.
Investor Insight: Sun Belt markets are popular for good reason – they offer the triple threat of strong rental demand, growing home values, and generally landlord-friendly policies. For 2026, expect Sun Belt supremacy to continue (particularly in the states of Florida, Texas and California). Investors should still prioritize due diligence on a city’s specific regulations (they can vary by county or city), but overall the southern markets remain fertile ground for STR opportunities.
Drive-to Vacation Destinations on the Rise
Beyond the big states, 2025 saw huge interest in “drive-to” leisure markets, think charming mountain towns, lakeside retreats, and regional beach areas within a few hours’ drive of major metro areas. These markets boomed during the pandemic travel shift, and investor appetite hasn’t let up.
Some of the most-searched cities on Chalet fell into this category. Sevierville, TN – a gateway to the Smoky Mountains – was the #1 most searched city with 1.8% investor searches for properties there. Its neighbors Gatlinburg, TN (0.8%) and Pigeon Forge also ranked in the top 20. Together, this Smoky Mountain trio drew thousands of would-be buyers seeking lucrative cabin rentals. The appeal? Driveable from many East Coast and Midwest cities, year-round family demand at Great Smoky Mountains National Park, and relatively affordable large cabins, a perfect recipe for STR ROI.
Other drive-to darlings included Myrtle Beach, SC, which cracked the top 5 most-searched markets (1.0%) as a beach destination accessible to millions of Southeastern road-trippers. Broken Bow, OK, a rural lake and woods getaway for Texans, also made the top 10 by investor interest (0.7%). In the Blue Ridge Mountains of North Georgia, tiny Blue Ridge, GA saw outsized attention with investors drawn to its cozy cabin culture. And up north, the Poconos in Pennsylvania quietly racked up searches as a classic driveable vacation home region for Northeast urbanites.
These trends show investors chasing where travelers are going. With many Americans still preferring closer-to-home vacations, rentals in drivable getaways offered a sense of safety and convenience that translated into strong occupancy, and investors took notice. It’s no accident that several of 2025’s top markets (by number of investor searches) were places like “cabins in the woods,” “lakeside cottages,” or “mountain ski lodges.” These properties often come at lower price points than big-city condos or coastal villas, yet they tap into reliable year-round demand from families and friend groups.
Investor Insight: If you’re looking toward 2026, don’t ignore the “backyard vacation” trend. Regional leisure markets can offer high yield for a lower cost. However, be mindful of competition – many of these spots (Smokies, Poconos, etc.) have seen inventory balloon as so many investors piled in. The best strategy is to identify a unique value-add for your property (amazing game room, scenic view, top-notch management) that helps it stand out in a crowded market.
Where Investors Were Buying (Closed Deals)
Finally, we look at where investor interest translated into purchases. In 2025, the closed deals were distributed across diverse locations, but a few markets clearly stand out. Austin, TX led the list with roughly 9% of all Chalet deals. Next came San Diego, CA, Kissimmee, FL, Fort Lauderdale, FL, Dallas, TX, and Myrtle Beach, SC – each with just over 6%. No other market contributed to more than 3% of total deals.
Interestingly, the markets driving closed deals largely echo the search and inquiry leaders, though not perfectly. For example, San Diego (5th in searches) and Kissimmee (6th in searches) each delivered 6% of total deals closed. Similarly, Dallas (15th in searches) and Fort Lauderdale (24th in searches) each contributed to roughly 6%, reflecting strong conversion. In contrast, the top search market Sevierville, TN had zero closed deals in 2025 despite its robust query count. Conversely, Orlando (25th in searches) only produced around 3% of total closed dealss, well below its share of inquiries.
Overall, these results underscore a classic funnel effect: of hundreds of markets investors looked at, only a handful yielded actual purchases. This pattern suggests that investors remain selective, drilling down from broad research to focused engagement. Markets like Austin, Dallas, San Diego and Kissimmee not only attract attention but have also proven their ability to close deals, marking them as high-conversion markets in 2025.
