Applied ML in Real Estate

(A picture is worth a thousand words!)

Dr. Thies Lindenthal

Department of Land Economy / University of Cambridge
E-mail: htl24@cam.ac.uk / Twitter: @ThiesLindenthal

Teach computers to “see”
Infer quality or style attributes from street-level images.

Vintage Value?
“Machine Learning, Architectural Styles and Property Values”,
with Erik Johnson

Large scale, low cost
Collecting images/feature vectors of each building in the UK.

Electric car!

Solar panels!

Loft conversion!

Questions so far?

Don't be shy.

ML in AVM
Automatic valuation, incorporating image data.

• $ \small log({Price}_{it}) = \alpha_{0} + X^{'}_{it}\beta + \varphi_t + \omega_i + \epsilon_{it} $
• Classify residuals based on images (out of sample), then re-estimate:
• $ \small log({Price}_{it}) = \alpha_{0} + X^{'}_{it}\beta + PredResidual_i\gamma + \varphi_t + \omega_i + \epsilon_{it} $

More Questions?

There is surely something.

Let's talk?

I would love to hear from you!

E-mail: htl24@cam.ac.uk
Twitter: @ThiesLindenthal