Navigating the Tide: How Flooding, Insurance, and Jobs Shape the Greater Daytona Beach Region’s Real Estate Future
By Jami Gallegos, Lifestyle Realty Group Owner/Broker
As a longtime local and Owner/Broker of Lifestyle Realty Group, a I’ve witnessed firsthand the ebbs and flows of our local real estate market. Today, that market stands at a pivotal moment—shaped not just by supply and demand, but by a confluence of economic, environmental, and legislative forces that affect every business, homeowner, and stakeholder in our community. From residential neighborhoods in Port Orange to commercial corridors in Daytona Beach, the story of real estate in Volusia County is one of resilience, opportunity, and adaptation. Let’s dive into where we are now, where we’re headed, and what it means for you.
The Current Market: A Buyer’s Window Amid Shifting Sands
As of April 2025, the greater Daytona Beach region’s residential market reflects a subtle shift toward buyers. The median home price hovers around $335,000 across Volusia County, down 4.0% from last year, with homes spending an average of 60 days on the market. Inventory is up, with 1,506 homes listed in February 2025, giving buyers more options and negotiating power. Volusia County has seen a steady increase in available months’ supply of inventory, currently crossing squarely into the “buyers market” of 6+ months inventory in February. This cooling trend, while modest, signals a rebalancing after years of rapid appreciation. For businesses, this means more affordable housing options for employees—a critical factor in attracting and retaining talent.
On the commercial side, demand remains steady but selective. Retail and office spaces tied to industries like healthcare, tech, and tourism are holding strong in Daytona Beach, while older properties in areas like New Smyrna Beach face pressure to modernize or reposition. The growth of mixed-use developments along key corridors reflects a broader trend: businesses and residents alike want walkable, vibrant spaces that blend work and lifestyle.
The Forecast: Growth with Guardrails
Looking ahead, experts predict residential prices will stabilize through 2025, with a modest 3-4% uptick by year-end as mortgage rates settle around 6.2-6.5%. This assumes the Federal Reserve’s 2024 rate cuts continue to ease borrowing costs—a big "if" given persistent inflation concerns. Commercial real estate, meanwhile, will see targeted growth, particularly in areas tied to job creation. The push for high-paying jobs in sectors like aerospace in Daytona Beach and advanced manufacturing in DeLand could spur demand for office and industrial spaces, especially if workforce training programs expand to meet employer needs.
But this growth comes with guardrails. Two major challenges loom large: flooding and property insurance. Recent flooding in Volusia County, particularly from Hurricanes Ian (2022) and Milton
(2024) was marked by unprecedented rainfall, prolonged impacts, and damage exceeding historical norms, with the risk of vulnerability only increasing further over the next 30 years. Florida’s high property insurance costs stem from its storm-prone nature, litigation legacy, and market fragility—issues decades in the making. Recent reforms have curbed legal abuse, lured new insurers, and begun depopulating Citizens, yielding a modest profit and slight premium relief (e.g., 0.7% drop in Q4 2024). However, with premiums still triple the national average and hurricane risks looming, these measures are a step forward but not a full fix. For Volusia County homeowners, savings from reforms may be offset by rising flood insurance costs (up 350% since 2020) and compliance burdens like long lookback periods. Long-term relief hinges on sustained insurer profitability, lower reinsurance costs, and a quieter storm season—none guaranteed in 2025.
What It Means for You
For Chamber members—whether you’re a mom-and-pop shop, a sales professional, or a corporate executive—these trends demand attention. Rising costs could shrink your customer base if housing and insurance squeeze disposable income. Yet, opportunities abound: commercial spaces in resilient, job-rich zones will thrive, and residential buyers can snag deals in this buyer-friendly window. My advice? Partner with experts who understand these dynamics. Email me at Jami.Gallegos@LifestyleRealty.Group for a printable Volusia County market report and snapshot of current mortgage rates. Let’s build a future where our market—and our community—thrives.
Jami D. Gallegos is the Owner/Broker of Lifestyle Realty Group in Ormond Beach. With over 20 years of diverse real estate expertise, she leads a team of agents committed to driving value for clients and the Daytona region.
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