I think you already know the answer to your own question.
You told him how you felt and he told you how he felt. End of story. If he wanted a relationship with you, he would have said so when you admitted your feelings for him. I think his reason is a very good one--he doesn't want to mess up a friendship--though if he were interested in you romantically, he would take a chance.
Talking to you every day and flirting aren't signs of romantic interest. Friends talk every day and guys flirt with female friends. Anyone in your shoes would want to believe that these are good signs, but I don't think they are.
The good news is that clearly he is fond of you and likes being around you. You'll just have to decide if that is enough. Feelings can change over time, so there's a chance he might develop romantic interest down the road. You can't hold out hope for that, though; you have to live in the now. If you like the guy and enjoy his company, accept the relationship for what it is today and roll with it.
Thanks for the question.