Daytona Beach, FL
⚖️ Balanced Market📊 Fundamental Scores
🎯 The Bottom Line
The Daytona Beach housing market is a buyer's market with a 15.8x price-to-rent ratio. Prices have corrected -7.5% YoY, creating opportunities for investors seeking cash flow in this coastal hub.
📈 Price History
📊 Market Activity
📈 Market Analysis
Market Cycle
The current Daytona Beach housing market is experiencing a significant cooldown, transitioning firmly into a buyer's market phase. With a 7.4 months of supply, inventory levels are well above the 6-month threshold that defines a buyer's market. This shift is further evidenced by the 94.5% sale-to-list ratio, indicating that sellers are accepting offers below their initial asking prices.
Supply & Demand
Supply is currently outpacing demand in the Daytona Beach real estate landscape. Monthly new listings (219) are more than double the volume of homes sold (100), creating a backlog of active inventory now sitting at 737 active listings. While 19.5% of homes still sell within two weeks, the broader trend favors buyers who have time to negotiate. The 34.5% of listings with price drops signals that sellers are adjusting expectations to meet market realities.
Pricing Power
Pricing power has decisively shifted to buyers. The median days on market has extended to 64 days, giving purchasers ample leverage. The median home price currently sits at $242,743, reflecting a -7.5% YoY price change. This price correction suggests the market is finding a new equilibrium after previous growth phases, presenting a potential entry point for long-term holders.
Daytona Beach, FL Housing Market Forecast 2026–2028
🔮 Daytona Beach Price Forecast 2026–2028
Daytona Beach, FL Housing Market Forecast 2026–2028
For anyone asking will Daytona Beach home prices drop, the recent -7.5% YoY change suggests a cooling correction after years of growth. However, the 5-Year Price Change of 27.1% and a 5-Year CAGR of 4.8% show a resilient underlying trend. A Price-to-Rent Ratio of 15.8x—below the national average of 18x—keeps the market relatively affordable, supporting steady demand from both owner-occupants and investors. With a Days on Market of 64, properties are moving at a measured pace, indicating a more balanced environment than the frenetic post-pandemic surge.
Looking at the Daytona Beach housing market forecast for 2026-2028, local factors will play a pivotal role. Continued expansion of the aerospace and aviation sectors, alongside tourism and healthcare, should underpin job growth and household formation. Affordability remains a key advantage compared to Florida’s pricier coastal markets, but rising insurance premiums and property taxes could pressure buyers. The current Market Temperature of 56/100 and a Risk Grade of B+ point to moderate stability without speculative excess. For Daytona Beach real estate Daytona Beach 2027, expect price appreciation to normalize in the low single digits, supported by steady in-migration and limited new supply near the coastline.
A balanced assessment suggests the market will avoid dramatic swings. While the Median Home Price of $242,743 and Median Rent of $1,152/mo create a neutral buy/rent verdict, the Price Range over the last five years ($191,033–$277,987) highlights a stable band of values. If borrowing costs ease and job growth continues, modest appreciation is likely; if insurance costs rise sharply or demand softens, prices could tread water. The outlook is cautiously constructive, with opportunities for long-term buyers and income-focused investors.
Disclaimer: This forecast is a statistical projection based on historical price trends and should not be considered financial advice. Actual market outcomes may vary due to economic conditions, interest rates, local regulations, and other factors.
🏠 Rent vs Buy Analysis
Monthly Cost Breakdown
When analyzing the buy vs rent Daytona Beach decision, the numbers favor renting in the short term. The median rent is $1,152/month. Assuming a 20% down payment on the $242,743 median price with a 7% interest rate (including taxes and insurance), the estimated monthly mortgage payment significantly exceeds the median rent. This gap suggests that immediate cash flow is negative for leveraged buyers.
5-Year Comparison
Over a 5-year horizon, the dynamic shifts. While renting offers lower monthly outlays initially, buying builds equity. The 15.8x P/R ratio is below the national average of 18x, making Daytona Beach more favorable for buying than many U.S. metros. However, with home prices currently down -7.5% YoY, immediate appreciation is not guaranteed, requiring a focus on long-term hold strategies.
When Renting Wins
- Short-term flexibility is required, as the median days on market of 64 days makes liquidating a property slow.
- Preserving capital for other investments, given the high upfront costs of purchasing a home.
- Market uncertainty, as the 7.4 months of supply suggests prices may stabilize or dip further before rising.
When Buying Wins
- Long-term wealth accumulation through principal paydown and eventual market recovery.
- Locking in a fixed housing cost, protecting against future rent inflation.
- Investors utilizing the 15.8x P/R ratio to acquire assets below the national average cost basis.
🧮 Can You Afford Daytona Beach? Interactive Calculator
Income Reality Check
Can you actually afford Daytona Beach?
Great! At 22.2%, this mortgage falls within healthy financial limits. You have strong purchasing power in Daytona Beach.
💰 Investment Thesis
Cash Flow Analysis
For investors looking to invest in Daytona Beach, the current metrics present a mixed but opportunistic picture. The median rent of $1,152/month against a median home price of $242,743 suggests a gross rental yield of approximately 5.7%. However, after accounting for leverage, taxes, insurance, and maintenance, the net yield compresses. With the sale-to-list ratio at 94.5%, investors can negotiate below asking prices, potentially improving the cap rate slightly.
House Hacking
House hacking is a viable strategy in this environment. With the price-to-rent ratio at 15.8x, purchasing a multi-family property or a single-family home with extra rooms allows an owner-occupant to offset a significant portion of the mortgage. The median home price of $242,743 keeps entry costs accessible for this strategy, and the 34.5% of listings with price drops provides negotiation leverage to secure better financing terms.
Target Investor
The ideal investor for the Daytona Beach real estate market is a 'buy-and-hold' player focused on cash flow rather than rapid appreciation. With a Risk Grade of B+ and a Boomtown Radar score of 31, this is not a speculative flip market. The target investor should have a long time horizon, utilizing the 15.8x P/R ratio to acquire assets that cash flow immediately or break even, banking on the region's tourism and event economy (Daytona 500, Bike Week) for sustained occupancy.
🏘️ House Hacking Calculator Interactive Calculator
House Hacking CalculatorOwner-Occupied Multi-Fam
🗺️ Neighborhood Breakdown
Entry-Level
Entry-level buyers and investors should focus on areas like Daytona Heights and Midtown. These neighborhoods offer Daytona Beach home prices well below the $242,743 median, often in the $180k-$220k range. While the median days on market is 64, these areas see quicker turnover for renovated properties. They offer high rental demand due to proximity to downtown and the beach, though investors must factor in potential higher maintenance costs for older housing stock.
Mid-Range
The mid-range segment, including Port Orange and parts of Ormond Beach, attracts families and long-term renters. Prices here align closely with the $242,743 median. The 7.4 months of supply is felt strongly here, with 34.5% of listings seeing price cuts. This is a competitive segment where buyers can expect concessions. These areas offer stability and lower volatility compared to the immediate beachfront.
Premium
Premium areas include the Oceanside corridor and Halifax Plantation. These neighborhoods command prices significantly higher than the median home price. However, the market correction has hit these areas, with -7.5% YoY price change affecting luxury valuations. Inventory sits longer here, with median days on market often exceeding the county average. For investors targeting the vacation rental market, the buy vs rent Daytona Beach calculation changes here, as short-term rental premiums can justify higher acquisition costs.