House price prediction modeling using machine learning techniques: a comparative study

Abstract

In the literature, there are two basic approaches regarding the determination of house prices. One of them is the prediction of house price using macroeconomic variables in the country where the house is produced, and another one is the price prediction models, which we can express as micro-variables, by considering the features of the house. In this study, the price of the house was attempted to be predicted using machine learning methods by establishing a model with micro variables that reveal the features of the house. The study was conducted in Turkey’ Antalya province, where household housing demand of foreigners is also high. The house advertisements in locations belonging to the lower, middle- and upper-income groups were selected as the sample. In the results, it was observed that the artificial neural network (ANN) method made predictions with more meaningful results compared to support vector regression (SVR) and multiple linear regression (MLR). These results appear to be a viable model for institutions that supply housing, mediate housing sales, and provide housing financing and valuation. It is considered that this model, which can be used to predict fluctuating house prices, especially in developing countries, will regulate the housing market.