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.
You can't force a guy to ask you out, no matter how flirty or interested in you he seems. You already made your move by telling him your feelings, and at this point it doesn't look like he wants to go for it.
The best thing to do is to just drop the idea of a relationship with this guy for now. If you continue to bombard him with your romantic feelings, he's either going to a) pull away from you, or b) feel guilt-tripped into asking you out, which is a crappy way to start a relationship. If by some chance he does end up wanting to start a relationship at some point in the future, the ball's in his court.
I've been in this exact situation with my best friend for three years. The best advice I can give is that if you genuinely love this person and like having him in your life, you're going to have to accept it for what it is.
Your feelings won't just go away, but you need to consciously recognize when you are reaching to see what's not really there. It's hard - every time he touches you, you'll wonder if it means something. Every time he says "I love you" you'll wonder if he means as more than a friend. You need to recognize that you are misreading these things and put them out of your mind. It will drive you crazy otherwise. A good way to do that is, when you start to think something he said or did is a sign he had romantic or sexual feelings for you, ask yourself if you would read that exact same thing the same way if it came from another friend of yours.
Maybe he will develop those feelings for you some day, but like GBFF said, don't hold out for that. You will drive yourself crazy and drive him away. Accept your role in his life as a friend and hope that in time your feelings change to something more platonic.