Investigating Factors Affecting House Prices - Chicago as an Example

Abstract

House is a very important necessity in human society and its price is also highly concerned. With the rapid development of the society, the house price is also rising rapidly, how to find some favourable ways to buy a house is very important for people. This paper will firstly analyse the relationship between house price and some factors by grouping them with box-and-line diagrams, then further calculate the correlation coefficients between the factors and house price, and further correlate the factors with house price. After that, this paper will use multiple linear regression to analyse the relationship using house price as y and other eight variables as x. After that, this paper will conclude that Space, Garage, Bathroom, Lot will have a substantial positive impact on the price. The price will have a significant negative effect due to the bedroom. But Room, Condition, Tax will not have any effect on Price. Finally, this paper will summaries the results of the analysis and provide some preferred methods for people to buy houses.