Prediksi Harga Rumah dengan Regresi Linier

Abstract

Property price determination is a complex challenge influenced by various factors, thus requiring an effective method for accurate prediction to support investment decision-making. In the current digital era, conventional approaches are being replaced by data-driven and artificial intelligence methods, where Linear Regression remains a popular choice due to its simplicity and effectiveness in modeling linear relationships. This study aims to analyze the relationship between the physical characteristics of a house and its selling price, and to build an accurate predictive model using the Linear Regression algorithm. A quantitative method was used, focusing on Building Area , Number of Rooms, and Building Age  against the House Selling Price. Correlation analysis results show that Building Area has the strongest correlation (0.81) with price, while Building Age shows a negative correlation (-0.52). The Linear Regression model demonstrated very strong and stable performance. The model achieved an R² Score of 0.9396 on the testing data, meaning 93.96% of house price variability can be explained by the model. Furthermore, the low MAE of only 11.31 million rupiah indicates a small prediction error, and the consistency of R² scores confirms that the model does not suffer from overfitting. This study concludes that the Linear Regression model provides excellent, stable, and reliable prediction performance for projecting house selling prices