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The question of 'the best neighborhood to buy a property in Daytona Beach' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At WhatsmyCashFlow, when we write a blog post or when we update our real estate spreadsheet for Daytona Beach, we want to bring solutions for everyone.
Enjoy the read, and please remember that we are not financial or investment advisors. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Daytona Beach, Florida?
The housing market in Daytona Beach, Florida, is dynamic and continuously evolving, making it an intriguing prospect for buyers and investors.
One of the city’s strengths lies in its unique combination of a thriving tourism industry, stunning coastal beauty, and a vibrant cultural scene. The presence of major attractions like the Daytona International Speedway, the Daytona Beach Boardwalk, and numerous beachfront resorts creates a high demand for housing as tourists and seasonal residents flock to the city for leisure and relaxation. Why does it matter? Because this influx of visitors drives up property values, making it a lucrative market for investors like you.
Let’s be honest - Daytona Beach offers attractions and amenities that are rare elsewhere.
The city's iconic Daytona Beach, world-renowned for its hard-packed sand where driving is permitted, and distinct neighborhoods like the historic Beach Street and the upscale Ormond Beach area are just a few examples. Its unique geography, with miles of coastline and proximity to the Halifax River, provides breathtaking views and a limited amount of space for new development, contributing to the city's exclusivity.
People who are looking to buy in Daytona Beach often include retirees, vacation home seekers, and young families seeking a relaxed coastal lifestyle and a lively urban environment. The diverse cultural landscape, excellent public amenities, and laid-back atmosphere also attract a wide array of buyers.
For those interested in buying and renting out property in Daytona Beach, the high demand for rental units from transient tourists and seasonal residents ensures a steady stream of potential tenants, making it a sound investment.
The real estate market in Daytona Beach is exceptionally dynamic. For instance, the median home price saw a year-over-year increase of around 8% recently, indicating a robust and competitive market. This constant flux in property values and demand underscores the market's vibrancy and potential for significant returns on investment.
One very specific aspect of Daytona Beach properties is the prevalence of mid-century modern and coastal-style architecture, which adds a unique charm and historical value.
These architectural styles, characterized by clean lines, large windows, and pastel colors, are highly sought after and can command premium prices. This architectural uniqueness is a significant draw for buyers who appreciate the city's historical and aesthetic value.
As mentioned before, several factors contribute to the future appreciation of property values in Daytona Beach. The ongoing tourism boom, limited housing supply due to geographical constraints, and continuous influx of retirees and vacationers are key drivers.
Additionally, ongoing urban development projects and infrastructural improvements, such as the expansion of public transit and revitalization of certain neighborhoods, will likely further boost property values up.
Top neighborhoods in Daytona Beach to consider for living
Areas in Daytona Beach that are budget-friendly
| Neighborhood | Average Price per Square Foot ($) | Characteristics | Resident Demographics | Strengths |
|---|---|---|---|---|
| Midtown | 150 | Diverse community, industrial past, ripe for renovation, increasing connectivity | Working-class families, artists, young professionals | Community spirit, connectivity with city |
| Holly Hill | 170 | Suburban feel, proximity to Halifax River, tranquil, strong community | Long-time locals, retirees, young families | Strong community, good schools, recreational opportunities |
| South Daytona | 160 | Diverse population, on the cusp of change, family-friendly, vibrant community events | Working-class families, retirees | Affordability, family-friendly environment, community events |
We’ll be transparent - when you’re looking to buy a property in Daytona Beach, finding an affordable and budget-friendly area can be quite the challenge.
However, there are still a few neighborhoods that stand out for their relative affordability and potential for future growth.
Let’s dive into three of these areas: Midtown, Holly Hill, and South Daytona.
Midtown
Midtown is one of the last frontiers for budget-friendly properties in Daytona Beach.
Historically, it has been one of the city's less expensive areas due to its industrial past and higher crime rates. However, recent years have seen significant investment in infrastructure and housing, leading to a gradual transformation.
The area is dotted with single-family homes, many of which are ripe for renovation. The average price per square foot hovers around $150, making it one of the more accessible areas in the city.
The community here is diverse, with a mix of working-class families, artists, and young professionals starting to move in.
Midtown’s strengths lie in its community spirit and increasing connectivity with the rest of the city, especially with the improvements in public transportation and road infrastructure.
However, it still struggles with perceptions of safety and lacks some of the amenities found in more affluent neighborhoods.
Holly Hill
Holly Hill offers a more laid-back, suburban feel while still being within the city limits.
It’s cheaper primarily because of its distance from the beach and the commercial hubs, which some people find less appealing.
That said, the neighborhood has a unique charm with its proximity to the Halifax River and the tranquility it offers.
You can find a mix of single-family homes and a few apartment complexes here, with an average price per square foot around $170.
The residents are a blend of long-time locals, retirees, and young families who appreciate the slower pace.
The strengths of Holly Hill include its strong sense of community, good schools, and recreational opportunities at the local parks and riverfront. On the downside, it can feel isolated, and the distance from the beach isn’t for everyone.
South Daytona
South Daytona is another neighborhood worth considering.
It’s cheaper because it hasn’t yet seen the gentrification that other parts of the city have, but it’s on the cusp of change. The area features a variety of property types, including single-family homes and multi-unit buildings.
The average price per square foot here is about $160. South Daytona is home to a diverse population, with a strong representation of working-class families and retirees. The neighborhood’s strengths include its vibrant community events, family-friendly environment, and relative affordability.
However, it lacks some of the polish and high-end amenities of more developed areas and has pockets that can feel a bit rundown.
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Areas in Daytona Beach that are popular and upscale
| Neighborhood | Average Price per sqm | Type of Properties | Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Beach Street | $5,000+ | Grand oceanfront mansions, luxurious condos, historic homes | Wealthy residents, business executives, celebrities, long-time local families | Beauty, safety, proximity to top-rated schools, high-end shopping, stunning views | High cost of living, potential for severe weather during hurricane season |
| Ortona | $4,500 | Opulent single-family homes, upscale apartments, condos | Affluent professionals, young families, retirees | Rich history, stunning views, vibrant cultural scene, central location, excellent public transportation | Noisy streets, challenging parking |
| Daytona Highlands | $3,500 | Charming bungalows, modern condos, smaller single-family houses | Families, young professionals | Pleasant weather, safe streets, strong community feel, excellent schools, easy access to major highways | High cost of living, limited nightlife options |
Beach Street
You may have heard of it before. Beach Street is one of the most upscale and desirable neighborhoods in Daytona Beach.
It's quite expensive, with average prices per square meter often exceeding $5,000. This area is home to some of the city's wealthiest residents, including business executives, celebrities, and long-time local families.
Properties here include grand oceanfront mansions, luxurious condos, and historic homes, all offering stunning views of the Atlantic Ocean and easy access to the beach. Beach Street will likely remain hyped due to its prestigious reputation, prime location, and breathtaking scenery.
The strengths of this neighborhood include its beauty, safety, and proximity to top-rated schools and high-end shopping on Beach Street.
However, the downside is, without surprise, the high cost of living and potential for hurricane season, which can bring severe weather at times.
Ortona
Ortona is another prestigious neighborhood known for its classic Daytona Beach charm and historic landmarks. It's quite expensive, with average prices around $4,500 per square meter.
This area attracts affluent professionals, young families, and retirees who appreciate its elegant architecture and convenient location. Properties here range from opulent single-family homes to upscale apartments and condos, many with vintage details and modern amenities.
Ortona is likely to stay popular because of its central location, excellent public transportation, and proximity to downtown.
The neighborhood's strengths include its rich history, stunning views, and vibrant cultural scene.
On the flip side, Ortona can be noisy due to its bustling streets, and parking can be a challenge.
Daytona Highlands
Daytona Highlands is a favorite among families and young professionals looking for a more relaxed and community-oriented vibe. It is also expensive, but slightly less so than Beach Street and Ortona, with average prices per square meter around $3,500.
This neighborhood is known for its sunny weather, quaint boutiques, and family-friendly atmosphere.
Properties here include charming bungalows, modern condos, and smaller single-family houses.
Daytona Highlands' popularity is likely to continue due to its welcoming community, excellent schools, and easy access to major highways.
The neighborhood's strengths are its pleasant weather, safe streets, and strong community feel.
However, the high cost of living and limited nightlife options can be drawbacks for some residents.
Areas in Daytona Beach that emerge as new hotspots
| Neighborhood | Description | Key Attractions | Current Property Prices | Future Outlook |
|---|---|---|---|---|
| Beach Street | Historically a commercial hub, now a vibrant area attracting young professionals and families. | New restaurants, boutiques, cultural venues, cafes, breweries, art galleries, scenic views of the Halifax River, Riverfront Park. | More affordable compared to Ormond Beach or Ponce Inlet. | Prices likely to rise as more people discover its potential. |
| Midtown | Once a gritty industrial zone, now one of the trendiest neighborhoods with stylish lofts and artist studios. | Chic restaurants, boutique shops, tech startups, central location, easy access to public transportation. | Climbing, but still lower than Daytona Beach Shores or Pelican Bay. | Property values expected to continue climbing as more people move in. |
| Daytona Highlands | Once considered too far removed, now a sought-after neighborhood with a family-friendly atmosphere. | New cafes, local markets, community events, proximity to Daytona International Speedway and Daytona Beach Golf Club. | More affordable than central parts of the city. | Property values expected to rise as more people seek its suburban charm. |
If you're looking to invest in a neighborhood with strong long-term rental demand and the potential for significant returns, these emerging hotspots in Daytona Beach, Florida, are worth considering.
Beach Street
Beach Street, historically a commercial hub, has undergone significant transformation in recent years.
Originally known for its retail shops and office spaces, Beach Street is now a vibrant area attracting a mix of young professionals and families. The recent influx of new restaurants, boutiques, and cultural venues has injected new life into the neighborhood.
The introduction of new cafes, breweries, and art galleries has made Beach Street a hotspot for creatives and entrepreneurs.
Despite its commercial roots, the neighborhood offers scenic views of the Halifax River and ample green spaces, like the newly renovated Riverfront Park.
Beach Street's property prices are still more affordable compared to neighborhoods like Ormond Beach or Ponce Inlet, mainly because it's only recently started gaining attention.
As more people discover its potential, prices are likely to rise, but for now, it remains a relatively budget-friendly option.
Midtown
Midtown, once a gritty industrial zone, has seen a remarkable turnaround and is now one of the trendiest neighborhoods in the city.
Its transformation began with the conversion of old warehouses into stylish lofts and artist studios. The opening of chic restaurants, boutique shops, and tech startups has further cemented Midtown's status as an up-and-coming area.
The neighborhood's central location and easy access to public transportation make it highly attractive.
While prices here are climbing, they are still lower than in areas like Daytona Beach Shores or Pelican Bay. The community vibe and the blend of historic charm with modern amenities make Midtown particularly appealing to young professionals and tech workers.
Expect property values to continue to climb as more people flock to this dynamic area.
Daytona Highlands
Daytona Highlands, once considered too far removed from the city's hustle and bustle, is now becoming a sought-after neighborhood.
Known for its quiet streets and family-friendly atmosphere, Daytona Highlands has long been a hidden gem for those seeking a more laid-back lifestyle. Recent years have seen an influx of new cafes, local markets, and community events, reflecting the area's growing appeal to a younger, more diverse demographic.
The proximity to Daytona International Speedway and the Daytona Beach Golf Club provides ample recreational activities, making it ideal for sports enthusiasts and families.
The real estate prices in Daytona Highlands are still more affordable than in the central parts of the city, partly because it's perceived as being on the periphery.
However, as more people seek out its unique suburban charm, you can expect property values to rise.
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Top neighborhoods in Daytona Beach to invest in propertyAreas in Daytona Beach with a strong long-term rental demand
| Neighborhood | Types of Tenants | Types of Properties | Rental Income | Rental Yield | Tips for Increasing Income |
|---|---|---|---|---|---|
| Daytona Beach Shores | Retirees, vacationers, snowbirds | Well-furnished condos, homes with amenities | $2,500 - $3,500/month (1-bedroom) | 5-6% | Opt for properties with direct beach access or ocean views |
| Ormond Beach | Families, retirees | Single-family homes, townhouses | $2,000 - $2,800/month (2-bedroom) | 4-5% | Consider properties near Granada Boulevard |
| Main Street Pier Area | Tourists, young professionals, event-goers | Modern condos, apartments, vacation rentals | $3,000 - $4,000/month (2-bedroom) | 5-6% | Focus on properties with views of the ocean or the pier |
If you're considering investing in residential property in Daytona Beach, Florida, for short-term rental purposes, targeting areas with high demand can significantly boost your returns. Three key areas stand out: Daytona Beach Shores, Ormond Beach, and the Main Street Pier area.
Daytona Beach Shores
Daytona Beach Shores is a prime location known for its stunning oceanfront properties and a laid-back, resort-like atmosphere. This area attracts a mix of retirees, vacationers, and snowbirds looking for a serene beachside experience.
Tenants here typically seek well-furnished condos and homes with amenities such as pools, beach access, and fitness centers.
One-bedroom oceanfront condos in Daytona Beach Shores can fetch around $2,500 to $3,500 per month during peak season. The rental yield here can be attractive, ranging between 5-6%, thanks to the high demand and premium rental rates.
Opt for properties with direct beach access or ocean views to ensure lower vacancy rates and higher rent.
The main drawback is the seasonal nature of demand, which can fluctuate significantly between peak tourist seasons and off-peak times.
Ormond Beach
Ormond Beach is another hotspot, popular for its family-friendly environment and quieter beaches.
This area appeals mainly to families and retirees who enjoy the mix of local restaurants, parks, and shops. Tenants in Ormond Beach often look for single-family homes or townhouses with modern amenities and spacious yards.
Here, two-bedroom homes can rent for about $2,000 to $2,800 per month. Rental yields can be solid, around 4-5%, given the consistent demand for the area's relaxed vibe.
To maximize rental income, consider properties near Granada Boulevard, the heart of the district's activity. However, be mindful of the quieter atmosphere, which might not appeal to those seeking a more vibrant nightlife.
Main Street Pier Area
The Main Street Pier area is a bustling neighborhood with a reputation for its lively atmosphere and proximity to major attractions. It draws tourists, young professionals, and event-goers who prefer being close to the action.
Properties in this area often include modern condos, apartments, and vacation rentals. Rental rates for a two-bedroom apartment here can reach $3,000 to $4,000 per month. Due to the high tourist traffic, the rental yield might be higher, around 5-6%, but the area offers stability and lower vacancy rates during peak seasons.
Focus on properties with views of the ocean or the pier to attract top-tier tenants and command higher rents. The primary downside is the competition from other vacation rentals and the potential for noise from nearby events and nightlife.
Areas in Daytona Beach with a strong short-term rental demand
| Neighborhood | Demand Reasons & Tenant Profile | Preferred Properties & Amenities | Average Nightly Rate & Tips |
|---|---|---|---|
| Beachside | Proximity to the ocean and popular attractions like the Daytona Beach Boardwalk and Pier. Vacationers and families who appreciate beachfront properties. | Properties with ocean views, a pool, high-speed internet, and a fully equipped kitchen. | $200-$300/night. Invest in condos or homes with direct beach access and modern furnishings. Properties with balconies or patios offering ocean views will attract more tenants and reduce vacancy rates. |
| Downtown Daytona Beach | Cultural attractions, dining, and shopping options. Tourists and business travelers looking for a vibrant urban experience. | Stylish, centrally-located properties with a well-stocked kitchen, secure parking, and proximity to public transportation and local hotspots. | $150-$250/night. Invest in modern apartments or historic homes close to Beach Street, known for its shops and restaurants. |
| Ortona | Quieter, more residential experience with historic charm and modern amenities. Tourists and retirees. | Well-furnished homes or condos with a private garden, fitness center, and easy access to the riverfront. | $180-$280/night. Focus on properties near the river, offering serene views and a peaceful environment. Restoring historic features while incorporating modern luxuries can attract a high-end clientele and ensure consistent bookings. |
If you want to reduce the risk of your property investment in Daytona Beach, and especially the vacancy rate, aim for these 3 neighborhoods.
Beachside
Beachside is a prime area for short-term rentals due to its proximity to the ocean and popular attractions like the Daytona Beach Boardwalk and Pier.
The typical tenants in Beachside are vacationers and families who appreciate beachfront properties with easy access to water activities and entertainment.
They look for properties with ocean views, a pool, and modern amenities like high-speed internet and a fully equipped kitchen. For a one-night stay in Beachside, you can expect to charge around $200-$300.
To maximize rental income in Beachside, invest in condos or homes with direct beach access and modern furnishings. Properties with balconies or patios offering ocean views will attract more tenants and reduce vacancy rates.
Downtown Daytona Beach
Downtown Daytona Beach is another neighborhood with strong short-term rental demand, attracting tourists and business travelers.
The area is known for its cultural attractions, including the Daytona Beach Bandshell, and a variety of dining and shopping options.
Tenants in Downtown Daytona Beach are often looking for stylish, centrally-located properties that offer convenience and a vibrant urban experience. They appreciate amenities like a well-stocked kitchen, secure parking, and proximity to public transportation and local hotspots.
The average nightly rate in Downtown Daytona Beach ranges from $150 to $250. To get better rental income in this area, consider investing in modern apartments or historic homes close to Beach Street, known for its shops and restaurants.
Ortona
Ortona is a desirable location for short-term rentals, attracting tourists and retirees seeking a quieter, more residential experience.
This neighborhood offers a mix of historic charm and modern amenities, and is close to landmarks like the Ortona Dog Park and the Halifax River.
Tenants in Ortona typically prefer well-furnished homes or condos with modern amenities. They look for properties with features such as a private garden, a fitness center, and easy access to the riverfront.
The average price for a one-night stay in Ortona is between $180 and $280.
To increase rental income, focus on properties near the river, offering serene views and a peaceful environment. Restoring historic features while incorporating modern luxuries can attract a high-end clientele and ensure consistent bookings.
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Areas in Daytona Beach where property prices might increase in the future
| Neighborhood | Why Prices Are Low | Current Developments | Factors for Price Increase |
|---|---|---|---|
| Beach Street | Somewhat overlooked, relatively affordable. | Riverfront Esplanade project, improvements to Daytona Beach Pier bringing new housing, retail spaces, and recreational areas. | Large-scale redevelopment transforming area, increased desirability and livability. |
| Midtown | Not as well-known, one of the last affordable areas in Daytona Beach. | Midtown Cultural and Educational Center improving community facilities, educational programs, and cultural events. | Proximity to public transport, infrastructure upgrades, hidden-gem status. |
| Seabreeze Historic District | Prices higher than Beach Street or Midtown but still reasonable compared to more central neighborhoods. | Seabreeze Plaza turning old commercial area into mixed-use neighborhood with offices, homes, and retail spaces. | Proximity to Main Street and the beach, new job opportunities, urban development. |
As these neighborhoods continue to develop and attract more residents and businesses, you can expect property values to rise, making them smart choices for investment.
Beach Street
Beach Street is an area that’s starting to see a lot of interest.
Prices here are still relatively affordable because the neighborhood has been somewhat overlooked.
However, with the new Riverfront Esplanade project and the planned improvements to the Daytona Beach Pier, there's a lot of investment pouring in. These projects are bringing in new housing, retail spaces, and recreational areas. As the area becomes more desirable, expect a rise in property prices.
Single-family homes and townhouses will be in high demand as families and young professionals move in looking for more space and a community vibe.
The key factor here is the large-scale redevelopment, which will transform the neighborhood into a more attractive and livable area.
Midtown
Midtown is another neighborhood with great potential. It’s one of the last affordable areas in Daytona Beach, partly because it’s not as well-known as other parts of the city.
However, it's gaining attention due to its proximity to public transportation and the ongoing improvements to local infrastructure, like the Midtown Cultural and Educational Center.
This project aims to revitalize the area with better community facilities, educational programs, and cultural events.
Properties like multi-family units and condos will see high demand here, especially because they cater to the young professionals and families looking for reasonably priced options with good commute access.
The ongoing infrastructure upgrades and the neighborhood's hidden-gem status make it ripe for appreciation.
Seabreeze Historic District
Seabreeze Historic District is already somewhat trendy but still has room to grow.
Prices are higher than Beach Street or Midtown, but still relatively reasonable compared to more central neighborhoods.
The big draw here is the proximity to the bustling Main Street and the beach.
With new developments like the planned Seabreeze Plaza, which is turning an old commercial area into a mixed-use neighborhood with offices, homes, and retail spaces, Seabreeze Historic District is becoming increasingly desirable.
High-demand properties will include modern lofts and apartments that appeal to professionals looking for a short commute and a vibrant local scene.
The combination of new job opportunities and exciting urban development will drive property prices up.
How to get the best ROI out of a property investment in Daytona Beach, Florida?
Picking the right neighborhood in Daytona Beach is not everything.
Each neighborhood has potential if the strategy is right, but it cannot be based on gut feeling. You need to analyze the data and make financial projections. This approach will save you from a lot of mistakes and money losses.
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