Housing Price Modeling Using a New Geographically, Temporally, and Characteristically Weighted Generalized Regression Neural Network (GTCW-GRNN) Algorithm

• Published in: Buildings (Basel) Vol. 15; no. 9; p. 1405
• Main Authors: Zali, Saeed, Pahlavani, Parham, Ghorbanzadeh, Omid, Khazravi, Ali, Ahmadlou, Mohammad, Givekesh, Sara
• Format: Journal Article
• Language: English
• Published: Basel MDPI AG 01.05.2025
• Subjects: Algorithms; American dollar; Analysis; Artificial neural networks; currency market; Dwellings; Fluctuations; Foreign exchange market; Foreign exchange rates; Geography; GRNN; GTCW-GRNN; GTWR; Heterogeneity; Housing; housing price modeling; Housing prices; Independent variables; Liu, Timothy; Modelling; Neural networks; physical features; Population density; Real estate; Real property; Regression; Regression analysis; Roads & highways; Spatial heterogeneity; Iran
• ISSN: 2075-5309; 2075-5309
• DOI: 10.3390/buildings15091405

The location of housing has a significant influence on its pricing. Generally, spatial self-correlation and spatial heterogeneity phenomena affect housing price data. Additionally, time is a crucial factor in housing price modeling, as it helps understand market trends and fluctuations. Currency market fluctuations also directly affect housing prices. Therefore, in addition to the physical features of the property, such as the area of the residential unit and building age, the rate of exchange (dollar price) is added to the independent variable set. This study used the real estate transaction records from Iran’s registration system, covering February, May, August, and November in 2017–2019. Initially, 7464 transactions were collected, but after preprocessing, the dataset was refined to 7161 records. Unlike feedforward neural networks, the generalized regression neural network does not converge to local minimums, so in this research, the Geographically, Temporally, and Characteristically Weighted Generalized Regression Neural Network (GTCW-GRNN) for housing price modeling was developed. In addition to being able to model the spatial–time heterogeneity available in observations, this algorithm is accurate and faster than MLR, GWR, GRNN, and GCW-GRNN. The average index of the adjusted coefficient of determination in other methods, including the MLR, GWR, GTWR, GRNN, GCW-GRNN, and the proposed GTCW-GRNN in different modes of using Euclidean or travel distance and fixed or adaptive kernel was equal to 0.760, 0.797, 0.854, 0.777, 0.774, and 0.813, respectively, which showed the success of the proposed GTCW-GRNN algorithm. The results showed the importance of the variable of the dollar and the area of housing significantly.