How do neighborhood characteristics influence the asking price of a house?

… and what variables are most relevant in predicting these prices?

Project Details

Timeframe

April 2017 – July 2017

Type of Project

Market Research & Data Analysis

Methods & Skills

  • Quantitative
  • Data Analysis

Tools

  • STATA

Deliverables

Presentation

Final Report

This project is a final assignment of 0HM270 Supercrunchers course.

Background Problem

It is no secret that there exist vast differences between the prices of homes that are situated in different areas. After all, more and more people want to live in major cities as opposed to the countryside. Despite the obvious differences in the price between locations, there are many other factors that determine the price of a home, such as the facilities nearby and job opportunities. Thus, it is important to know the effect of these characteristics on the value of a home.

The main goal of this research was to investigate to which extent the asking price of a property is determined by its neighborhood. More precisely, we elaborate on how the different physical, social and functional characteristics of the neighbourhood influence the asking price.