Investing in Daytona Beach could turn out profitable – as long as you follow the rules of the market and stick to certain limitations.
The housing market has experienced an enormous boost and, among other things, a turnaround in locations where the return on investment is at its peak.
And some of those changes can be observed in Airbnb Daytona Beach, FL.
If we’re to be completely honest here, investing in such a popular real estate market is not something you can do with your eyes closed.
Beginners and professionals should double-check current standards and information before emptying their pockets.
As you know, smart investing involves calculating both the benefits and the risks.
We’ve taken the time to research the area and make your job easier when it comes to getting to know the real estate market. So, if investing in Daytona Beach has been on your mind for quite a while now, here’s your chance to catch up on crucial information, and hopefully, make a decision.
Scroll down to read our verdict on this investment opportunity!
Florida Real Estate: Backbone Information
Before officially laying down the information regarding Airbnb Daytona Beach, FL, we deem it necessary to get to know the market first.
That is especially useful for beginners – and it is undoubtedly helpful to have an insight into the current situation and be up-to-date with all the changes (if there are any, that is).
Florida has experienced a boom in 2021 – but will this remain the same in the years ahead?
The short answer to this would be:
Absolutely. There’s not much changing in the Florida real estate market; it’ll remain a hotspot for potential investors, as well.
One of the contributing factors is that Florida is bordered by the Atlantic Ocean, The Gulf of Mexico, Alabama, and Georgia.
Frankly, Florida has long held the title of the most famous and most visited tourist attraction – hence the nickname “The Sunshine State.”
Florida Housing Market: Bait For Investors?
It’s not something limited to Airbnb Daytona Beach, FL that we’re talking about here – it’s the entire sunny state of Florida.
We’re not exaggerating when we say this:
The numbers of single-family home buyers have doubled within the housing market. Inventory is going down gradually, and home sale prices are going up.
Naturally, when investors see a good chance, they’ll grab it with both hands.
Here are some stats you should know if you’re considering real estate investing:
- The median home value in Florida was $328,576 in October of 2021.
- Home values have increased by 23.9% over the course of one year.
- Home values have increased by 69% over the past five years.
- Prices for single-family homes have increased by 17.7%.
- Contracting a single-family home takes approximately 12 days.
- By the end of 2021 (October), active listings were down by 30%.
- Inventory was down at a low 1.3 month’s supply.
Is Florida A Strong Renter’s Market?
Investing in real estate also implies knowledge of the type of market in a particular area. And in this case, Florida is indeed a strong renter’s market – and you can see this in the following facts:
- Median rent for a 3-bedroom home in Miami amounts to about $3,000, while Tampa rents go as high as $2,500.
- Rents in the most popular areas have seen a rise between 25% and 31% over the course of one year.
- Renters currently occupy 34% out of the total housing units in Florida.
- Single-family homes make up 60% of the Florida housing market.
- Certain areas have seen a rise in 24% in rents within just weeks.
Aside from the facts laid out so far, there are many other reasons why potential investors see Florida as a great place for making money in real estate.
That’s because people find good reasons to live and work in Florida.
For starters, it’s one of the few states without personal state-level income tax payments. It’s also a favorable location for students, with all the residents living within 50 miles of university or a college.
Surprisingly, the cost of living in Florida is still 2% below average, so you’re looking at a fair return on investment if you’re considering Airbnb Daytona Beach, FL, for example.
Whether you’re set on the Airbnb demand in Florida, or you’d like to explore other locations, you should check out our Mashvisor Rental Property Calculator.
Our Airbnb calculator allows potential investors to get better insight into the profitability of the property they’re interested in and is designed to help the investors estimate the profit. Plus, it offers a 7-day free trial!
Daytona Beach Real Estate Market
Let’s cut right to the chase. We’re here to reveal the bits and pieces of info regarding Airbnb Daytona Beach, FL.
Before deciding on your investment strategy, let’s see what the numbers have to say:
- Airbnb Rental Income: $2,876.91
- For-sale Listings: 200
- Airbnb Listings: 448
- Airbnb Occupancy Rate: 60.96%
- Airbnb Daily Rate: $135
- Traditional Rental Income: $1,399.72
- Airbnb CoC Return: 5.3%
- Median Price For Property: $362,465
- Property Price Per Square Foot: $279.31
- Days On The Market: 101
Why Should You Invest In Daytona Beach?
Despite the global influence of the COVID-19 pandemic, the situation in Florida – and more precisely, Daytona Beach – has not subsided. Airbnb rental income remains one of the most innovative ways to attain profits.
Of course, we must keep in mind that opinions tend to be divided – and not everyone sees a potential investment as a clean shot for property management here. That’s why we’re here to clear the air and present some valuable facts.
Let’s first focus on why you should invest in Airbnb Daytona Beach, FL.
Tourist Attraction
Since you’re considering Airbnb Daytona Beach, FL, you’re likely aiming at vacation rentals and locations that are attractive tourist destinations.
Daytona Beach is undoubtedly one of them – and its geographical location proves to be a huge advantage for someone who wants to expand their real estate portfolio in this way.
Sunny places like this will surely attract a large number of tourists every year – especially during summer vacation. Your presumed target group of tourists includes families, couples, students, etc.
In addition to its natural beauty, Daytona Beach is historically rich. So, visitors will have the opportunity to learn more about the humble beginnings of this beautiful place.
Sure, those who come will be intrigued by the area’s history, but one of the primary reasons your investment is safe is because of the esteemed Florida beaches.
Yes, without exaggeration, tropical Florida weather, sandy beaches, and crystal clear water are perhaps the biggest plus.
What we’re trying to say here is:
If you’re not planning on living on the property you’ve invested in, renting it out wouldn’t be an issue – you’ll always have incoming guests ready to enjoy all that Florida has to offer.
Low Living Costs
You may find it odd to believe at first, but living costs in Daytona Beach are lower than in some other popular tourist locations.
Many would dismiss the very notion of investing in Airbnb Daytona Beach, FL. If you take a closer look, though, the cost of living is a lot lower than in Miami, for example.
First off, the transportation is inexpensive. A lot of it involves walking – especially on the island. If we’re speaking numbers, transportation is 12% less expensive than most other cities nationwide.
There is also public transportation, which includes a regular public bus system. Riders can even save good money if they opt for a month’s pass.
Utilities are also affordable. The rates are more-or-less the same, depending on the provider. Still, don’t be lazy to do some research.
The only thing that might rattle your cage a bit is the groceries.
Since this is primarily a tourist destination, you could expect higher prices for food in stores – and a somewhat limited selection.
Great Spot For Second Home/Retirement Age
Sure, Daytona Beach is primarily attractive as a tourist destination. However, that’s not the only reason why potential investors are considering this area.
Apart from being a genuine paradise-on-Earth for short-term rentals and a source of positive cash flow, many investors see another investment opportunity here:
A second home.
Let’s say you live somewhere chilly, you have some funds saved up, and you’re looking to invest in a place where you’d love to spend your vacation days with family or a loved one.
Daytona Beach might be the perfect location for you.
As we’ve already mentioned in the first point, the living costs are low – and you won’t have to cash out a fortune once you decide to move up here.
Also, maintenance will not be a problem if you invest in a reliable security system.
On the other hand, investing in Daytona Beach is the right choice for someone who wants to spend their retirement days somewhere sunny. You can invest in a nice place where you see your future and issue your Airbnb income property until it’s officially time for you to retire and move in.
Affordable Properties
Last on our list of advantages of investing in Airbnb Daytona Beach, FL, would be that the properties here are genuinely affordable – compared to many other places.
Of course, none of this will be possible without good organization, searching, and deciding on your short-term rental strategy. Your budget will determine and narrow your site choices – as with any other investment.
In order not to talk in vain, here are some stats:
- Median Home Age: 42
- Home Appreciation (last 12 months): 15.4%
- Property Tax Rate: $7.97
- Homes Owned: 35.4%
- Holiday Homes: 19.6%
Possible Drawbacks
Even though we’re talking about Florida, the Sunshine State, not everything about investing in this area will be sunshine and butterflies. Despite the many benefits we have listed, there are still a few drawbacks that should be noted.
Getting A Loan
Getting a loan in Florida might be trickier than you initially imagined, so don’t be surprised if you notice that the process has taken a little longer.
Potential investors must calculate their Return On Investment (ROI) before making the deal official and buying the property. And to calculate this right, investors should use the following parameters:
- Annual rental income
- Net operating income
All in all, you need to make sure that you’re financially stable before you take this step. Most mortgage lenders and local Florida banks require a down payment of 15% at least.
So, if there is a problem with your liquidity, make sure you get your finances in order first.
Finding The Right Property
Even with all the resources available, many investors are working on their own, thinking that finding investment property is something they can do without the help of others.
They’ll find something for sure, but the return on investment won’t be even close to what they expected. Furthermore, unplanned investments and lack of research could lead to debt and legal problems – and nobody wants that.
So, upon deciding to invest in Daytona Beach, make sure that you’re not doing it completely alone. You’ll need all the help that you can get.
And we’ve already mentioned one tool that might assist you in the process.
Why put yourself – and your investment – at risk when you can have a clean slate by allowing the software to do the math for you?
Airbnb Daytona Beach Investing: The Final Verdict
That’s about it on Airbnb Daytona Beach, FL, and its investment opportunities. Since we’ve managed to cover the most critical Airbnb data and information, let’s do a quick recap.
Investing in Florida presents an attractive opportunity for investors across the US. Moreover, this favorable geographical destination offers numerous benefits – for tourists and residents alike.
Single-family homes and Airbnb are the brightest points of Florida’s real estate market right now – and investors are grabbing every chance they can get to invest in it.
Potential investors have a chance to attain significant profits by exploring the Daytona Beach housing market. And with the help of our Airbnb Calculator, the whole process could be done even faster than you initially thought.
We’ve laid out everything investors need to know. It’s up to you to review the facts one more time – and make up your mind.
And don’t forget:
If you have any more questions you’d like to ask, we’d be happy to answer them!