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Analyzing driving factors of land values in urban scale based on big data and non-linear machine learning techniques

Author

Listed:
  • Ma, Jun
  • Cheng, Jack C.P.
  • Jiang, Feifeng
  • Chen, Weiwei
  • Zhang, Jingcheng

Abstract

Land value plays a vital role in the real estate market. It is a critical reference for urban planners to reallocate land resources and introduce valid policies. Studying the influential factors on land value can help better understand the spatial-temporal variation of land values and design effective control policies. This attracted a number of scholars to study the spatial and temporal relationships between land value and its possible influential factors from the perspective of macro and micro. However, the majority of the existing studies have the problems of linear assumption and multicollinearity in research models. Limited features and the lack of feature selection procedure are another two commonly seen limitations. To overcome the gaps, this paper adopts non-linear machine learning (ML) methods to investigate the influential factors on land values per square foot based on “big data” in New York City. More than one thousand potential factors are considered, covering from the land attribute, point of interest, demographics, housing, to economic, education, and social. They are further selected using a feature extraction model named Recursive Feature Elimination (RFE). Six ML algorithms, including Random Forest (RF), Gradient Boosting Decision Tree (GBDT), Multi Linear Regression (MLR), Linear Support Vector Regression (SVR), Multilayer Perceptron (MLP) Regression, and K-Nearest Neighbor (KNN) Regression are evaluated and compared. The optimal one with an R-square value of 0.933 is used to calculate the feature importance further. Several important impact features are disclosed, including the number of newsstands, and the vacant housing percentage.

Suggested Citation

  • Ma, Jun & Cheng, Jack C.P. & Jiang, Feifeng & Chen, Weiwei & Zhang, Jingcheng, 2020. "Analyzing driving factors of land values in urban scale based on big data and non-linear machine learning techniques," Land Use Policy, Elsevier, vol. 94(C).
  • Handle: RePEc:eee:lauspo:v:94:y:2020:i:c:s0264837719306507
    DOI: 10.1016/j.landusepol.2020.104537
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    References listed on IDEAS

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    Cited by:

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    5. Maowen Sun & Boyi Liang & Xuebin Meng & Yunfei Zhang & Zong Wang & Jia Wang, 2024. "Study on the Evolution of Spatial and Temporal Patterns of Carbon Emissions and Influencing Factors in China," Land, MDPI, vol. 13(6), pages 1-24, June.
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    7. Jiang, Feifeng & Ma, Jun & Li, Zheng & Ding, Yuexiong, 2022. "Prediction of energy use intensity of urban buildings using the semi-supervised deep learning model," Energy, Elsevier, vol. 249(C).
    8. Stéphane C. K. Tékouabou & Jérôme Chenal & Rida Azmi & Hamza Toulni & El Bachir Diop & Anastasija Nikiforova, 2022. "Identifying and Classifying Urban Data Sources for Machine Learning-Based Sustainable Urban Planning and Decision Support Systems Development," Data, MDPI, vol. 7(12), pages 1-19, November.
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    10. Doan, Quang Cuong, 2023. "Determining the optimal land valuation model: A case study of Hanoi, Vietnam," Land Use Policy, Elsevier, vol. 127(C).
    11. Zhenwei Wang & Xiaochun Wang & Zijin Dong & Lisan Li & Wangjun Li & Shicheng Li, 2023. "More Urban Elderly Care Facilities Should Be Placed in Densely Populated Areas for an Aging Wuhan of China," Land, MDPI, vol. 12(1), pages 1-13, January.
    12. Cankun Wei & Meichen Fu & Li Wang & Hanbing Yang & Feng Tang & Yuqing Xiong, 2022. "The Research Development of Hedonic Price Model-Based Real Estate Appraisal in the Era of Big Data," Land, MDPI, vol. 11(3), pages 1-30, February.
    13. Qing Lu & Jing Ning & Hong You & Liyan Xu, 2023. "Urban Intensity in Theory and Practice: Empirical Determining Mechanism of Floor Area Ratio and Its Deviation from the Classic Location Theories in Beijing," Land, MDPI, vol. 12(2), pages 1-16, February.
    14. Kopczewska, Katarzyna & Ćwiakowski, Piotr, 2021. "Spatio-temporal stability of housing submarkets. Tracking spatial location of clusters of geographically weighted regression estimates of price determinants," Land Use Policy, Elsevier, vol. 103(C).
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