Comparative Analysis of Advanced Models for Predicting Housing Prices: A Review
Understanding the determinants of housing price movements is an ongoing subject of debate. Estimating these determinants becomes a valuable tool for predicting price trends and mitigating the risks of market volatility. This article presents a systematic review analyzing studies that compare various...
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MDPI AG
2025-01-01
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| Series: | Urban Science |
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| author | Inmaculada Moreno-Foronda María-Teresa Sánchez-Martínez Montserrat Pareja-Eastaway |
| author_facet | Inmaculada Moreno-Foronda María-Teresa Sánchez-Martínez Montserrat Pareja-Eastaway |
| author_sort | Inmaculada Moreno-Foronda |
| collection | DOAJ |
| description | Understanding the determinants of housing price movements is an ongoing subject of debate. Estimating these determinants becomes a valuable tool for predicting price trends and mitigating the risks of market volatility. This article presents a systematic review analyzing studies that compare various machine learning (ML) tools with hedonic regression, aiming to assess whether real estate price predictions based on mathematical techniques and artificial intelligence enhance the accuracy of hedonic price models used for valuing residential properties. ML models (neural networks, decision trees, random forests, among others) provide high predictive capacity and greater explanatory power due to the better fit of their statistical measures. However, hedonic regression models, while less precise, are more robust, as they can identify the housing attributes that most influence price levels. These attributes include the property’s location, its internal features, and the distance from the property to city centers. |
| format | Article |
| id | doaj-art-eda7f972f94247b3a8fe555f9ff87dba |
| institution | DOAJ |
| issn | 2413-8851 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Urban Science |
| spelling | doaj-art-eda7f972f94247b3a8fe555f9ff87dba2025-08-20T03:12:04ZengMDPI AGUrban Science2413-88512025-01-01923210.3390/urbansci9020032Comparative Analysis of Advanced Models for Predicting Housing Prices: A ReviewInmaculada Moreno-Foronda0María-Teresa Sánchez-Martínez1Montserrat Pareja-Eastaway2Department of Applied Economics, University of Granada, 18011 Granada, SpainDepartment of Applied Economics, University of Granada, 18011 Granada, SpainDepartment of Economics, University of Barcelona, 08034 Barcelona, SpainUnderstanding the determinants of housing price movements is an ongoing subject of debate. Estimating these determinants becomes a valuable tool for predicting price trends and mitigating the risks of market volatility. This article presents a systematic review analyzing studies that compare various machine learning (ML) tools with hedonic regression, aiming to assess whether real estate price predictions based on mathematical techniques and artificial intelligence enhance the accuracy of hedonic price models used for valuing residential properties. ML models (neural networks, decision trees, random forests, among others) provide high predictive capacity and greater explanatory power due to the better fit of their statistical measures. However, hedonic regression models, while less precise, are more robust, as they can identify the housing attributes that most influence price levels. These attributes include the property’s location, its internal features, and the distance from the property to city centers.https://www.mdpi.com/2413-8851/9/2/32machine learninghedonic pricespredictionpriceshousing |
| spellingShingle | Inmaculada Moreno-Foronda María-Teresa Sánchez-Martínez Montserrat Pareja-Eastaway Comparative Analysis of Advanced Models for Predicting Housing Prices: A Review Urban Science machine learning hedonic prices prediction prices housing |
| title | Comparative Analysis of Advanced Models for Predicting Housing Prices: A Review |
| title_full | Comparative Analysis of Advanced Models for Predicting Housing Prices: A Review |
| title_fullStr | Comparative Analysis of Advanced Models for Predicting Housing Prices: A Review |
| title_full_unstemmed | Comparative Analysis of Advanced Models for Predicting Housing Prices: A Review |
| title_short | Comparative Analysis of Advanced Models for Predicting Housing Prices: A Review |
| title_sort | comparative analysis of advanced models for predicting housing prices a review |
| topic | machine learning hedonic prices prediction prices housing |
| url | https://www.mdpi.com/2413-8851/9/2/32 |
| work_keys_str_mv | AT inmaculadamorenoforonda comparativeanalysisofadvancedmodelsforpredictinghousingpricesareview AT mariateresasanchezmartinez comparativeanalysisofadvancedmodelsforpredictinghousingpricesareview AT montserratparejaeastaway comparativeanalysisofadvancedmodelsforpredictinghousingpricesareview |