Chalet, a data-first platform for short-term rentals, released its year-end analysis of Airbnb calculator search patterns in 2025, revealing that 32.5% of all searches focused on just three Sun Belt states: Florida, California, and Texas. This concentration reflects the region's continued dominance in short-term rental investment interest, with search activity translating directly into execution as these states accounted for 69% of Chalet-assisted acquisitions in 2025.
The data indicates a significant shift toward secondary "drive-to" vacation markets, which saw higher engagement rates per listing than major cities. Regional destinations are being targeted over traditional urban hotspots, with nearly 70% of the 30 most-searched STR markets falling into this category. Sevierville, TN, a gateway to the Smoky Mountains, ranked as the most-searched city with 1.8% of total searches, outperforming major urban centers like Austin, TX (1.2%), Houston, TX (1.1%), and San Diego, CA (1.0%). This trend is mirrored in transaction data, with 73% of Chalet-assisted deals occurring in regional markets.
Despite this concentration in Sun Belt states, market interest remained broadly distributed, with the most-searched individual market accounting for only about 1.8% of total searches. This fragmentation underscores the diverse opportunities investors are exploring across the country. Chalet users closed 205% more STR property deals in 2025 compared to the previous year, indicating that users are not just browsing data but acting on it, converting analysis into executed transactions at an accelerated pace.
While searches were widely distributed, actual purchases showed more concentration at the execution stage. Austin, TX emerged as the single most active market for closed deals, accounting for just over 9% of all transactions. A second tier of markets, including San Diego, CA; Fort Lauderdale, FL; Dallas, TX; Kissimmee, FL; and Myrtle Beach, SC, each represented roughly 6% of closed deals. This pattern highlights the gap between broad research and selective execution, emphasizing the importance of detailed market insights for narrowing opportunities into actionable decisions.
The data also reveals the dampening effect of strict regulations on market interest. Interest in regulation-heavy metros like New York City and Los Angeles was negligible, accounting for under 0.2% of all searches. This underscores how restrictive regulatory frameworks significantly limit STR viability, pushing investment toward markets with more stable and host-friendly policies. The full 2025 analysis and free interactive market dashboard are available on Chalet's website at https://www.GetChalet.com.
Ashley Durmo, CEO of Chalet, noted that the overwhelming focus on Sun Belt states represents both a warning and an opportunity, indicating where momentum is strongest but also where markets may be overheating. The platform's goal is to provide unbiased data to help users identify emerging markets and avoid saturated hotspots. For investors and industry stakeholders, these trends offer crucial insights into where capital is flowing and where regulatory environments are shaping market dynamics, making this data essential for 2026 planning in the evolving short-term rental landscape.
