Why Investing in Daytona Beach Real Estate Is Smart

Looking for a strong investment location in the Florida real estate market? We recommend you consider starting a real estate business in Daytona Beach. The city has got some favorable investment conditions that should not go unnoticed. You’re going to want to know more about the Daytona Beach housing market 2019.

Overview of Daytona Beach

Dayton Beach, Florida- a coastal city with a population of over 68,000 people making it the 40th largest city in the state. What sets it apart from any other place in Florida? Well, it’s located along the coast of the Atlantic Ocean and gives visitors easy access to and from via the I-4 and I-95. But of course, that isn’t it. Known for having beautiful beaches with hard-packed sand that its residents and visitors can drive on, and its famous International Speedway for car racing, Daytona Beach has got something for everyone. Which explains why it’s such a favored community by Floridians.

You’ll find that the percentage of educated people in Daytona Beach hovers right above the national average. It’s also known for being a college town, meaning a good chunk of its population is made up of students. So you’ll find many events and activities catered to the younger adult demographic.

5 Reasons to Invest in Daytona Beach Real Estate

So let’s narrow in a little bit more on the Daytona Beach real estate market. What are some reasons that would motivate investing in Daytona Beach? Let’s see how these key factors make buying Daytona Beach real estate something you want to do.

1) Daytona Beach Real Estate Values Are Up

Real estate appreciation is an important factor to consider and a market’s historic trends can tell you a lot about how valuable an investment there would be. According to Zillow, the median value of Daytona Beach real estate is $147,400. Even though this may sound low compared to the rest of the nation, it’s a strong number for the region. Daytona Beach real estate appreciated by a rate of 5.1 percent over the past year alone, and is projected to go up another 2.8 percent within the next year. This is a good indicator of sustained future growth in market value making Daytona Beach real estate a great investment. Actually, Realtor.com projects the Daytona Beach metro to be one of the top five high-growth areas in 2019, with a 6.3 percent expected increase in property value.

2) Some of the Most Affordable Homes in Florida Can Be Found Here

Although home values are steadily climbing, the price of Daytona Beach real estate remains lower than many other parts of the country. So once you start searching for an investment property, don’t be shocked to find so many cheap houses for sale in Daytona Beach. According to Redfin, the average selling price of Daytona Beach real estate has increased a healthy amount (13.1 percent boost since last year) and is currently $160,000. But even with that, you’ll still be investing in a beautiful home for far less than what you’d have to pay in other parts of the Florida real estate market. For example, Jacksonville has an average of $239,900; Fort Lauderdale is $519,450; Orlando is $320,500; West Palm Beach is $265,000. When compared to these, Daytona Beach investment properties are looking more and more like great deals.

3) It’s Been Getting a Lot of Attention

The Daytona Beach real estate market has gained some attraction from a lot of different sources, and it’s all been good news. Last year, a U.S. News & World Report ranked Daytona Beach 7th place as the most popular location people would want to move to. It’s a popular spot among tourists, but sometimes visitors like what they find, and they choose to stay. This isn’t just true today- Daytona Beach has been welcoming a steady flow of new people for many years now. For example, from 2012 to 2016, net migration to Daytona Beach almost hit 9 percent. It’s also one of the top 25 fastest growing communities, according to the US Census Bureau. A real estate market with this much chatter around it is one you’re definitely going to want to invest in.

4) The Rental Market Is Strong

Daytona Beach real estate investments can really be best supported by taking a look at some key ROI metrics. Mashvisor’s investment property calculator has analyzed the rental property performance of Daytona Beach real estate. Here is a quick summary of how the rental market in Daytona Beach is looking like right now:

Median Property Price: $240,470
Price per Square Foot: $164
Price to Rent Ratio: 16
Average Days on Market: 117
Monthly Traditional Rental Income: $1,231
Traditional Cash on Cash Return: 2.7%
Monthly Airbnb Rental Income: $2,515
Airbnb Cash on Cash Return: 7.8%
Airbnb Occupancy Rate: 58%

So as you can see, rental property investment in Daytona Beach real estate is a promising strategy. The averages we’re seeing for traditional and Airbnb returns are very strong considering these are citywide return rates, so that means you can definitely find Daytona Beach homes for sale which will perform even better than the citywide rates.

When choosing a rental strategy, it’s important to consider external factors that can affect the outcome of this investment. When it comes to Airbnb Daytona Beach, there are some aspects to consider. Like, is Airbnb legal in Daytona Beach?

Short answer- yes, short term rentals are legal in the Daytona Beach real estate market. However, there are some Airbnb regulations that can restrict your options when opting for this strategy. Short term vacation rentals are not permitted in any residential zones. They are only legal in tourist zoning districts (where you’ll find hotels and motels) and redevelopment zones. So be careful when choosing a Daytona Beach real estate investment for Airbnb.

Find a Profitable Airbnb Investment Property

5) There Are a Lot of Profitable Properties to Choose From

A search for profitable real estate for sale in this market won’t be too difficult. The majority of residential Daytona Beach real estate is single-family homes (46.3 percent of housing) and apartment complexes (37.2 percent of housing). Daytona Beach real estate properties have some of the most impressive individual performance stats. We’ve used our Property Finder tool to quickly pick out just a couple of the many attractive listings. Once you see these numbers, you’ll wish you started investing in Daytona Beach real estate a long time ago. Check it out:

Investment Property #1:

List Price: $75,000
Traditional Cash on Cash Return: 11.3%
Airbnb Cash on Cash Return: 24.2%

Investment Property #2:

List Price: $62,748
Traditional Cash on Cash Return: 13.9%
Airbnb Cash on Cash Return: 28.1%

Investment Property #3:

List Price: $100,000
Traditional Cash on Cash Return: 9.1%
Airbnb Cash on Cash Return: 23.9%

It’s very rare to find numbers this good just anywhere. This should be reason enough to start investing in Daytona Beach real estate. You should start searching for properties yourself. Do you have a free Mashvisor account? Use our Property Finder to find lucrative Daytona Beach investment properties that match your criteria in a matter of minutes!

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