A Comparison of Multiple Linear Regression and Random Forest Regression to Evaluate the Price of Residential Units (Case Study: North Valiasr, Tabriz)

Document Type : Research Paper

Authors

Abstract

One of the most fundamental aspects of any country is the housing economy. Because its price changes will cause numerous effects on the national economy in the short and long periods; therefore, it is essential to obtain a model which can assess housing prices. In this regard, the objectives of this research are to compare multiple linear regression and random forest regression to evaluate the price of residential units and extract the important factors in relation to the price of them.  The statistical population included four north valiasr neighborhoods (n=30,272 units) and the sample size was estimated to be 379 units using the cochran formula at 95% confidence level and with a 5% error. But 400 samples considered. To eliminate the effect of time, only the data of september, 2020 were used. Also, arcmap, spss and rstudio software were used to analyze the data. According to the results, area, apartment floors, construction year, proximity to health centers, urban facilities, green spaces, religious land-use, medical centers, military land-uses and floor level, are the ten most important variables in relation to housing prices in the north valiasr neighborhoods, respectively. Further, according to the findings, random forest regression has a superior capability in predicting housing prices in north valiasr of tabriz compared to multiple linear regression.

Keywords

References

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Geography and Territorial Spatial Arrangement
Volume 11, Issue 40
September 2021
Pages 57-82

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  • Receive Date: 24 November 2021
  • Accept Date: 24 November 2021

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