House Price Prediction

Submitted to

Divyansh Chouhan

Sahil Chourasiya

Laxmi Farkase

Teesha Bhagat

Gaurav
 Abstract

Real estate is the least transparent industry in our ecosystem. Housing prices keep
changing day in and day out and sometimes are hyped rather than being based on
valuation. Predicting housing prices with real factors is the main crux of our research
project. This paper outlines how to predict housing costs using various regression
techniques using the Python library. The proposed method takes into account the
sophisticated aspects used in the house price calculation and provides a more accurate
forecast. This paper uses machine learning to explain how the house price model
works and which datasets are used in the proposed model.
People looking to buy a new home tend to be more conservative with their budgets
and market strategies. This project aims to analyse various parameters like , Lot area,
Street, Lot shape, Land slope, House style, Year built, Roof style Exterior, Bedroom,
Kitchen, Sale type, Sale price, Sale condition etc. and predict the house price
accordingly. This application will help customers to invest in an estate without
approaching an agent. It provide best price to user without getting cheated. It enable
user to search home as per the budget.
The main objectives of a house price prediction model are to accurately estimate the
future selling prices of houses based on various features and factors. This can be
valuable for real estate professionals, investors, and homeowners to make informed
decisions about buying or selling properties.
Several machine learning algorithms such as linear regression, decision trees, random
forests, support vector machines etc, are implemented and compared. Additionally,
techniques such as cross-validation and hyperparameter tuning are employed to
optimize model performance and prevent overfitting.
The findings depend on the dataset and model used, but they typically include insights
into which features are most influential in determining house prices. The model's
accuracy, measured by evaluation metrics, provides an indication of how well the
model performs in predicting house prices. Additionally, it might highlight areas
where the model struggles, potentially suggesting areas for improvement or further
research.
 TABLE OF CONTENTS

ABSTRACT iii

TABLE OF CONTENTS iv

LIST OF FIGURES v

LIST OF TABLES vi ABBREVIATIONS vi

1 INTRODUCTION 1

1.1 subtitle 1 2
1.2 subtitle 2 3
1.3 Software Requirements Specification 4
2 LITERATURE SURVEY 5

2.1 subtitle 1 5

2.2 subtitle 2 10

3 PROJECT PLANNING AND MANAGEMENT 15

3.1 subtitle 1 15

3.1.1 subsection 1 16

3.1.2 subsection 2 17

3.2 Design of Modules 18

4 METHODOLOGY 21
4.1 subtitle 1 21

4.1.1 subsection 1 23

4.1.2 subsection 2 25

4.2 subtitle 2 28

5 SYSTEM DESIGN 30

6 CODING AND TESTING 35

7 RESULTS AND DISCUSSIONS 40

8 CONCLUSION AND FUTURE ENHANCEMENT 45

REFERENCES 46
 CHAPTER 1

INTRODUCTION

1.1 Background of Project

Predicting house prices is a critical task in real estate, finance, and urban planning.
The ability to accurately forecast property values enables stakeholders to make
informed decisions regarding buying, selling, investing, and developing real estate
assets. Traditional methods of valuation rely on expert judgment, market analysis,
and historical data, which may be subject to biases and inaccuracies. In recent
years, advancements in machine learning and data analytics have provided new
tools and techniques for predicting house prices with greater accuracy and
efficiency.

1.2 Objective-

This project is proposed to predict house prices and get more accurate and better
results. This number will be of great help to everyone because house price is a
topic that many people care about, whether they are rich or middle class, because
one can never judge price or estimate the price of a home based on local or
properties available. To perform this task python programming language is used.
The primary objective of the house price prediction study is to develop and
evaluate machine learning models capable of accurately forecasting property
prices. This involves leveraging diverse datasets containing information on
property characteristics, location attributes, economic indicators, and historical
sales data. By applying various machine learning algorithms, feature engineering
techniques, and optimization methods, the study aims to identify the most effective
approach for predicting house prices. Additionally, the study seeks to provide
insights and recommendations for stakeholders in real estate, finance, and urban
planning sectors.

1.3 Scope-

 It specify the geographic area or areas for which the house

prices will be predicted. It could range from a specific
neighborhood to a city, region, or even multiple locations.
  It define the types of properties the model will focus on. It
could include residential houses, apartments,
condominiums, or other specific property types.
 It identify the features and variables that will be considered
in the prediction model. Common features include square
footage, number of bedrooms, location, amenities, and
economic indicators.
 It outline the methodology for validating and testing the
model. This could involve splitting the dataset into training
and testing sets, cross-validation, or other validation
techniques to ensure the model's accuracy.
 It specify the data sources from which information will be
gathered. This could include real estate databases, public
records, historical sales data, economic indicators, and
demographic information.

1.4 Software Requirements Specification-

Python –
Python is a high-level programming language for general purpose
programming. It allows explicit programming on large and small scales. It is
an easy to read language. Python supports various libraries such as
Pandas, NumPy, SciPy, Matplotlib etc. Python is a particularly useful
language for improving the web and advancing programming.

Machine Learning –
Machine learning is an area of artificial intelligence that allows PC
frameworks to learn and improve their execution using information.
Machine learning is an area of artificial intelligence that allows PC
frameworks to learn and improve their execution using information.

Google Collab-
Google Colab, short for Colaboratory, is a free cloud-based platform
provided by Google that allows users to write and execute Python code
collaboratively in a Jupyter Notebook environment. Google Collaboratory
notebook, is designed to facilitate machine learning (ML) and data science
tasks by providing a virtual environment, Google colab python with access
to free GPU resources. Multiple users can work on the same Colab
notebook simultaneously, making it a useful tool for collaborative projects.
 CHAPTER 2

LITERATURE REVIEW
2.1 Literature Survey

There are a number of things that affect home prices. In this exploration, divide
these components into the three essential sets, which have state of being, thought ,
and territory. States of being are homes confined through a residence that may be
visible through human recognizes, which includes the variety of the residence, the
quantity of rooms, the availability of kitchen and parking space, the openness of the
backyard nursery, the sector of land and structures, and the age of the residence,
whilst the concept is an concept supplied through architects who can pull in
capacity, for instance, the opportunity of a mild home, robust and inexperienced
condition, and global magnificence condition.
Traditional approaches to house price prediction often rely on hedonic models,
which decompose a property's price into the value of its characteristics. These
models typically include variables such as location, size, number of
bedrooms/bathrooms, and amenities.
Location plays a crucial role in determining house prices. Spatial analysis techniques, such
as spatial autocorrelation and spatial econometrics, have been used to account for spatial
dependencies and spatial heterogeneity in house price prediction models. Feature engineering
plays a crucial role in enhancing model performance. Studies have explored various
techniques for feature extraction, transformation, and selection to improve the predictive
power of house price models. Principal component analysis (PCA), feature scaling, and
interaction terms are among the methods used to extract meaningful information from raw
data. Recent studies have shown the effectiveness of machine learning algorithms in
predicting house prices. Various models, including linear regression, decision trees, random
forests, support vector machines, and neural networks, have been applied to analyze large
datasets containing diverse features. Ensemble methods and deep learning techniques have
also been employed to improve prediction accuracy. House prices exhibit temporal dynamics
influenced by economic factors, market conditions, and policy changes. Time series analysis
and econometric models have been utilized to capture temporal trends and seasonality in
house price data. Additionally, dynamic regression models and autoregressive integrated
moving average (ARIMA) models have been employed to forecast future price movements.
Overall, research in house price prediction continues to advance, leveraging interdisciplinary
approaches and innovative methodologies to improve prediction accuracy and provide
valuable insights for stakeholders in the real estate market.
2.2 Data Description

PARAMETER DESCRIPTION DATATYPE

OverallQual Rates the overall material Numerical
and finish of the house
YearBuilt Original construction date Numerical
Numerical TotalBsmtSF
TotalBsmtSF Total square feet of Numerical
basement area
GrLivArea Above grade (ground) Numerical
living area square feet
FullBath Full bathrooms above Numerical
grade
GarageCars Size of garage in car Numerical
capacity
GarageArea Size of garage in square Numerical
feet
WoodDeckSF Wood deck area in square Numerical
feet
PoolArea Pool area in square feet Numerical
YrSold Year Sold (YYYY) Numerical
SalePrice (Dependent Selling Price of the house Numerical
Variable)
Exterior2nd Exterior covering on Character
house (if more than one
material)
Foundation Type of foundation Character
Street Type of road access to Character
property
Neighborhood Physical locations within Character
Ames city limits
PROJECT PLANNING AND MANAGEMENT

[Detail the planning and management aspects of your project, including

timelines, resources, and any challenges faced.]
 CHAPTER 4

METHODOLOGY

[Explain the methods and approaches used in your project, detailing the steps taken to
achieve the objectives.]
 SYSTEM DESIGN

[Describe any specific algorithms used in your project or developed as part of the
research.]
 CHAPTER 6

CODING AND TESTING

 CHAPTER 7 RESULTS AND ANALYSIS

[Present the results of your project and provide a detailed analysis of the findings.
Use visual aids like charts or graphs if applicable.]
 CHAPTER 8 CONCLUSION AND FUTURE ENHANCEMENTS

[Summarize the key findings of the project and discuss any conclusions drawn. Also,
suggest possible future enhancements or areas for further research.]
 REFERENCES

[List all the sources cited in your report using a consistent citation style (e.g., APA,
MLA, etc.).]

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