A Real Estate Valuation Model Using Boosted Feature Selection

Abstract

To estimate real estate values, a complex valuation model based on artificial neural network (ANN) has been established as a successful means in modern machine learning research, specifically when high-dimensional data are available. Unfortunately, the real estate data in many locations, such as Thailand, are quite limited in terms of features. Hence, it becomes mandatory to reduce the complexity using feature selection techniques. These techniques aim to improve performance by identifying significant factors and help decrease the computational overload and model construction. However, due to the lack of explicability and interpretability in ANNs, the analysis of input factors cannot be explained directly by model composition. In this research, we apply a combination of a boosting strategy and input sensitivity analysis in an improved Garson's algorithm to perform feature selection that can adjust its selection criteria through each iteration on an ANN model. This proposed technique is then compared with other traditional feature selection techniques using synthetic data and real-world house valuation data. The results show that our model can maintain the sensitivity coefficient for every informative feature. The technique of this study provides a set of features that influences the house price and implies the character of each specific area. It also contributes to statistical improvement in most valuation cases, with a lower error than that obtained without a selected feature dataset, and it placed in the top 24% of the public leaderboard in the Zillow Prize competition. © 2021 IEEE.