National Pension Hub Publications / Pension Industry

Neighborhood Effects, Immigration and Real Estate Valuation:
A Machine Learning Approach

Erkan Yönder, Concordia University
Meriç Yücel, Istanbul Technical University


Abstract

Real estate has become an alternative asset class as being the best diversifier in pension fund portfolios, sovereign wealth funds, and life insurance companies. By its nature, real estate valuation is complex.

In this latest paper on real estate valuations, the authors merge housing data with a large set of neighborhood data and estimate house prices using machine learning models.