Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

How Smart Houses And Big Data Will Change Real Estate Economics

3/05/2014 by

W1siziisijiwmtqvmduvmtkvmtyvmdavmtcvotc3l0jpz19eyxrhlmpwzyjdlfsiccisinrodw1iiiwinjawedqwmfx1mdazzsjdxq

One of the features of big data is the accumulation of massive amounts of information that are not suited to traditional econometric and statistical techniques. I predict that this phenomenon will someday change the way real estate economics are done.

Models of house prices are used in a lot of ways. This is how a lot of cities and counties do “mass appriasals”. It’s how house price indexes separate price changes from quality changes. When companies like Zillow generate Zestimates of what a house is worth, these are the models underlying them. It’s how the Bureau of Labor statistics adjusts housing rents for quality changes and depreciation when computing the CPI.

The general form of these models is to take the log of price as the dependent variable, and housing and neighborhood characteristics as the independent variable. But the list of independent variables that is usually available gives you a relatively limited description. While the exact list varies form data source to data source, typically it might look like: building square footage, lot square footage, number of stories, number of bedrooms, number of bathrooms, central air (yes/no), number of fireplaces, garage size, finished basement (yes/no), and of course address.  Using this last variable you can get a lot more information about the neighborhood from other data sources.

This article has been extracted from http://www.forbes.com,  please click on this link to read the article in full http://www.forbes.com/sites/modeledbehavior/2014/05/19/how-smart-houses-and-big-data-will-change-real-estate-economics/

Montash is a multi-award winning, global IT recruitment firm. Specialising in permanent and contract positions across mid-senior appointments which cover a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Scientific Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.

With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtcvmdgvmtqvmtmvmjcvmjgvnja2l2nsb3rozxmuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

In Her Shoes... From Market Stall to Recruitment

2017-08-14 14:00:00 +0100

From the melee of the market stall to placing candidates in high-flying IT roles, life's always on the up from market-trader-turned-recruiter, Lois Hinken (22). She took the time to talk to us about how her experience in the cut throat world of the market has helped her in the world of global talent acquisition. As a 360 recruitment consultant for Montash, her negotiation skills and "go get it" attitude have helped her thrive. "I started working on the ...

W1siziisijiwmtcvmdgvmdcvmtmvmtcvntqvnze3l1vudgl0bgvkigrlc2lnbiaomikuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

Will AI Cost Us Our Humanity?

2017-08-07 15:00:00 +0100

As technology evolves, artificial intelligence is becoming increasingly mainstream, and it will inevitably start to impact the way we interact. On the one hand, AI has the potential to solve a variety of problems and streamline our lives and our work. But will this come at the cost of the all-important human touch? A foreshadowing statistic claims that by 2020, 85% of client interactions will be managed without a human[1]. But can there really be an alg...