The Effect of Regional Economic Clusters on Housing Price

Abstract

A good location goes beyond the direct benefits from its neighbourhood. Unlike most previous statistical and machine learning based housing appraisal research, which limit their investigations to neighbourhoods within 1 km radius of the house, we expand the investigation beyond the local neighbourhood and to the whole metropolitan area, by introducing the connection to significant influential economic nodes, which we term Regional Economic Clusters. By consolidating with other influencing factors, we build a housing appraisal model, named HNED, including housing features, neighbourhood factors, regional economic clusters and demographic characteristics. Specifically, we introduce regional ec..