Analysis and Forecast of Influencing Factors of House Price in Boston

Boyao Zhang

2023

Abstract

The cost of housing is a significant indicator of economic activity. Both buyers and developers of real estate closely monitor fluctuations in home prices. As a result, developing an accurate housing price forecasting model is critical for the financial market and people’s livelihood. Boston dataset is used for data analysis in this paper. Firstly, this paper conducted a correlation study using Pearson’s r and created scatter plots between each variable and the house price. In the multiple linear regression model, this study employed techniques including outlier removal, collinearity, and variable transformation to optimize the model for a more accurate prediction, finally getting an R-squared of 0.7927. In random forest model, this research finds the optimal parameter value and then compares the importance of predictors using the indicators %IncMSE and %IncNodePurity. Finally, this study determines that the random forest regression model is superior through the investigation of the factors that influence home prices, and this paper also analyze the elements that influence house prices and consider the shortcomings of this paper.

Paper Citation

in Harvard Style

Zhang B. (2023). Analysis and Forecast of Influencing Factors of House Price in Boston. In Proceedings of the 1st International Conference on Data Analysis and Machine Learning - Volume 1: DAML; ISBN 978-989-758-705-4, SciTePress, pages 107-113. DOI: 10.5220/0012797700003885

in Bibtex Style

@conference{daml23,
author={Boyao Zhang},
title={Analysis and Forecast of Influencing Factors of House Price in Boston},
booktitle={Proceedings of the 1st International Conference on Data Analysis and Machine Learning - Volume 1: DAML},
year={2023},
pages={107-113},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012797700003885},
isbn={978-989-758-705-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Data Analysis and Machine Learning - Volume 1: DAML
TI - Analysis and Forecast of Influencing Factors of House Price in Boston
SN - 978-989-758-705-4
AU - Zhang B.
PY - 2023
SP - 107
EP - 113
DO - 10.5220/0012797700003885
PB - SciTePress