Housing Price Estimation with Deep Learning: A Case Study of Sakarya Turkey

Abstract

Shelter is one of the most basic human needs. Besides housing needs, the housing market is also very important for investment. It is also a market where many people, such as engineers, architects, real estate agents make economic gain. When a house is bought for living in it, it is not desired to be changed for many years, and when it is bought for investment, it is a tool that requires good income. Therefore, the best decision should be made when buying a house, and it should be scrutinized. Correct estimation of house prices is very important for both buyers to make the right decision and for sellers to sell without a loss. There are many parameters for estimating house prices. In addition to variables such as the number of floors, location, and several bathrooms used in previous studies, economic factors (such as the price of bread, foreign currency price, new car price) and the housing loan interest rate of the banks were taken as inputs in this study. Sakarya province, where all parameters can be tested to make a more accurate determination, was chosen as the research area. A comparison of polynomial regression, random forest, and deep learning methods was made and it was concluded that the most accurate method was deep learning. At the same time, it was determined which parameters are more effective in house price estimation.