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The research on factors influencing house value-take California as an example
- 1 Capital Normal University High School
- 2 University of Connecticut
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Abstract
Housing price is a popular and important topic in today’s society. This article aims to find the factors that have impacts on the housing price. To find the relationships between factors, this article uses Multiple Linear Regression as the method to perform a significant analysis of factors. 1000 samples of California’s block groups in 1990 are selected for this research. Based on the assumption, this research chooses 8 explanatory variables for the analysis. Because of the relationships between explanatory variables, the article also adds interaction terms between latitude and longitude, and population and total bedrooms to solve the multicollinearity problem among explanatory variables. To optimize model analysis effectiveness, this research compares the significance, VIF value, and GVIF value of explanatory variables. The analysis result shows that the geographical location (Latitude and longitude), the housing median age, the total bedrooms, the population, and the median income make significant impacts on the housing value. Among these factors, the median income is the main factor.
Keywords
Housing prices, multiple linear regression, interaction terms, California
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Cite this article
Li,T.;Yang,X. (2024). The research on factors influencing house value-take California as an example. Theoretical and Natural Science,39,96-102.
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Volume title: Proceedings of the 2nd International Conference on Mathematical Physics and Computational Simulation
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