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

W1siziisijiwmtcvmdyvmtkvmtavndkvmtavntuvc2h1dhrlcnn0b2nrxzqymzk2mjg2ni5qcgcixsxbinailcj0ahvtyiisijm4mhgxmdajil1d

Long Term Transition, Not Long Term Tradition...

2017-06-20 09:00:00 +0100

It seems odd that while 88% of businesses are undergoing some kind of digital transformation[1], only 25%[2] of them have a clear understanding of their digital transformation journey. So what's driving so many businesses to pursue digital with such recklessness? Broadly speaking, the reason is simply the unprecedented rate of change in digital solutions and services. As we ride the digital tidal wave, consumers and employees change their expectations, ...

W1siziisijiwmtcvmdyvmtmvmtavmjqvmjuvodcxl3nodxr0zxjzdg9ja181njewnja3mzmuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

How Great Leaders Cultivate Great Teams

2017-06-13 12:00:00 +0100

There's a difference between being a boss and being a leader. Leaders know how to inspire the best from their teams to achieve industry-leading results. For our latest blog, we spoke to our Managing Director, Roy Dungworth, to discover how businesses can create a culture that inspires great people to do great things together. Success in business doesn't begin and end with great leadership. Great leaders inspire their teams to want to do more and be bett...