Repository logo
 

Machine Learning, Architectural Styles and Property Values

Accepted version
Peer-reviewed

Type

Article

Change log

Authors

Johnson, EB 

Abstract

jats:titleAbstract</jats:title>jats:pThis paper couples a traditional hedonic model with architectural style classifications from human experts and machine learning (ML) enabled classifiers to estimate sales price premia over architectural styles, both at the building and the neighborhood-level. We find statistically and economically significant price differences for houses from distinct architectural styles across an array of specifications and modeling assumptions. Comparisons between classifications from ML models and human experts illustrate the conditions under which ML classifiers may perform at least as reliable as human experts in mass appraisal models. Hedonic estimates illustrate that the impact of architectural style on price is attenuated by properties with less well-defined styles and we find no evidence for differential price effects ofjats:italicRevival</jats:italic>orjats:italicContemporary</jats:italic>architecture for new construction.</jats:p>

Description

Keywords

Applied machine learning, Aesthetic preferences, Architectural externalities, Automatic valuation models

Journal Title

Journal of Real Estate Finance and Economics

Conference Name

Journal ISSN

0895-5638
1573-045X

Volume Title

Publisher

Springer Science and Business Media LLC

Rights

All rights reserved