International Conference on sustainable Emerging

Innovation in Engineering and Technology

(ICSEIET-2023)

Research Paper
on
House price prediction using gradient boosting and linear regression

Presented By:
Utkarsh Gupta
Graphic Era Hill University
Dehradun, Uttrakhand

ICSEIET-2023
 Objective
 Abstract
 Introduction
 Literaturereview
 Explained Model Building
 Data Collection and Preprocessing
 Linear Regression
 Result Analysis
 Conclusion
 References

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 The prime objective of a house price prediction model is to
accurately estimate or predict the market value or selling price
of a residential property based on relevant features and data.
 House price prediction model is to tell you how much a house
is likely to cost based on things like its size, location, and
other features. This helps people decide how much to buy or
sell a house for and whether it fits their budget. It's like having
a smart tool to figure out a fair price for a home.

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Our house price prediction model employs advanced data analysis and machine
learning techniques to provide accurate estimates of property values. By considering
factors like property size, location, and features, this model assists buyers, sellers, and
investors in making well-informed decisions in the dynamic real estate market. This
presentation will delve into the model's methodology, its performance in real-world
scenarios, and the valuable insights it offers for real estate professionals and
homeowners.

In the dynamic and ever-evolving real estate market, the ability to accurately
predict house prices plays a pivotal role in informed decision-making for buyers,
sellers, investors, and real estate professionals. This abstract introduces a robust house
price prediction model built on the principles of data science and machine learning.

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 In today's real estate market, determining the fair price for a house is a critical question for buyers, sellers,
and investors.
 We have developed a powerful house price prediction model that leverages data science and machine
learning to provide precise property value estimates.
 Throughout this presentation, we will delve into the inner workings of our model, explaining the
methodologies and techniques behind its accurate predictions.
 Beyond technical details, this presentation explores the transformative potential of data-driven insights in
real estate transactions.
 Whether you're a homebuyer, seller, investor, or real estate professional, our model aims to empower you
with informed decision-making in the dynamic housing market.

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 Darshil Shah, Harshad Rajput and Jay Chheda, “House Price Prediction
Using Machine Learning and RPA”, Volume 7 Issue 3 (2020).
- They has used- Light GBM, XG Boost and Random forest techniques.
- They introduced automated system with best accuracy of predicting house prices.

 Neelam Shinde and Kiran Gawande, “Done a research of house prices

using Predictive Techniques”
- They have used algorithm like lasso, SVR and logistic regression and then
compared their accuracy

 G. Naga Satish, Ch. V. Raghavendran, M.D.Sugnana Rao, Ch.Srinivasulu, “House

Price Prediction Using Machine Learning”, Volume 8 Issue 9 (2019).
- He has used linear regression,gradient boosting and lasso regression techniques to
predict the house

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• The collection of data is the mandatory part for making machine able to predict price. For
training the machine learning project a big amount of dataset is required. A perfect dataset
having well mentioned fields and attributes that can be used to re-label the dataset. A good
dataset having a great accuracy to predict the price. I have attempted on various datasets from
kaggle, and taken the best dataset which suits my project aim. After some searching I have found
this dataset.

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• Cleaning of data is done so that the error can be removed of the dataset. Hence, by doing this
the value of the data increases. Wrangling tools are used to clean the data. Wrangling tool
removes the complex information. So, that data can be used for predicting the house prices.

• Pre-processing means breaking the dataset into two parts a training and
testing module. As in dataset, There present some non-numerical features
also such as the house environment, location and house is ready to move or
not. use one hot ender and label encoder function which is the library of sci-
kit learn, these libraries helps to convert the non-numerical into numerical
features. In dataset some empty set also there so to remove that I have used
the mean of the column using the simple imputer function which is also the
library of the scikit learn.

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In this model a linear relation has been build between the dependent variable(A) and a single independent variable (B).
With the help of regressor line fitting between dependent and independent variables linear relationship is built. The
equation of line is shown by:
B = x + yA (1)
Whereas variables ‘x’ and ’y’ are known as the model parameters. When we take A as 0, we get value of ‘x’ which is
intercept of B and ‘y’ is slope which show change of the variable B with A. If ‘y’ value is larger then if we make a
smaller in A that will lead to make a large change in B. The value of ‘x’ and ‘y’ by the least square method. Every
times the predicted values is not accurate so sometimes there will be a difference, for that we include one term to
the equation (1) which is known as error term, by doing this is help to predict better values.
B= x + yA+Ɛ (2)
Some prediction has been done in simple linear regression that is:
1. The number of parameters present must be smaller than the number of observations made.
2. The mean error value of Ɛ has to be0, by this we know that the term Ɛ is distributed normally.

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 For implementing the house price prediction firstly, we have to download import the required libraries for
our project like NumPy, pandas, matplotlib. pyplot, scikit-learn. After all the libraries imported, the data
imported which is used to train our model for prediction of the house stored in the form of .csv format.
After everything imported the data cleaning process start to remove all the errors from the data so that it
becomes clean, and then data preprocessing start. After data preprocessing model is implemented and
judged. For judging the model I have used train-test splitting method, in this data is divided into two parts
like 70% of the dataset is used for training purpose and remaining 30% is used to test the model. After this
splitting the simple regression and polynomial regression is implemented in the model to check the
accuracy.
 Linear Regression gives the accuracy of 85.64% and where the decision Tree gives the accuracy of 56.02%

Accuracy Plot

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In conclusion, in today’s era prices of house houses are increasing
regularly due to population increase and people are facing problem to get
a get a good house of their choice and needs. So, this model helps people
to buy a house of their own choice and in a budget amount. To know the
accurate price of the house we need some data like location of house,
number of bedrooms ,bathrooms and the house is ready or not. Many
times a person pay a more amount of the house then the actual price,
Similarly many times a seller of the house also gets a low amount then
the originalprice, because of this many real estate company also faces
problem. The main purpose model is to solve the problem of people
facing when they are predicting the house price. My project looks for
useful models for predicting the value of house. I have collected dataset
for training and testing my project, first of all the data is changed into a clean
dataset. After that Different modes are used to achieve an optimal solution.

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[1] Bahia has made research on price prediction by using data mining techniques. “The idea that was proposed in his paper was
that the two types of neural network constructed that will form a neural network model”.
[2] Darshil Shah, Harshad Rajput and Jay Chheda, “House Price Prediction Using Machine Learning and RPA”, Volume 7 Issue
3 (2020).
[3] G. Naga Satish, Ch. V. Raghavendran, M.D.Sugnana Rao, Ch.Srinivasulu, “House Price Prediction Using Machine
Learning”, Volume 8 Issue 9 (2019).
[4] Durganjali made a model of resale of house price prediction using classification algorithm.
[5] Gupta, R., Kabundi, A., & Miller, S. M. (2011). Using the US real house price index: Structural and non-structural models
with and without fundamentals. Economic Modelling, 28(4), 2013-2021.
[6] Neelam Shinde and Kiran Gawande, “Done a research of house prices using Predictive Techniques”.
[7] Adyan Nur Alfiyatin and Hilman Taufiq, “Researched on House Price Prediction using Regression Analysis”, (IJACSA)
International Journal of Advanced Computer Science and Applications.
[8] Timothy C. Au, “Done by using Random Forests, Decision Trees, and Categorical Predictors: The Absent Levels Problem”.
[9] D. Banerjee and S. Dutta, "Predicting the housing price direction using machine learning techniques", 2017 IEEE
International Conference on Power, Control, Signals and Instrumentation Engineering (ICPCSI), pp. 2998-3000, 2017.
[10]Y. Tang, S. Qiu and P. Gui, "Predicting Housing Price Based on Ensemble Learning Algorithm", 2018 IEEE International
Conference on Artificial Intelligence and Data Processing (IDAP), pp. 1-5, 2018.
[11]T. D. Phan, "Housing Price Prediction Using Machine Learning Algorithms: The Case of Melbourne Cit y, Australia", 2018
IEEE International Conference on Machine Learning and Data Engineering (iCMLDE), pp. 35-42, 2018.
[12]Y. Chen, R. Xue and Y. Zhang, "House price prediction based on machine learning and deep learning methods," 2021
International Conference on Electronic Information Engineering and Computer Science (EIECS), pp. 699-702, 2021
[13]J. J. Wang et al., "Predicting House Price With a Memristor-Based Artificial Neural Network," in IEEE Access, vol. 6, pp.
16523-16528, 2018.
[14]Tan F, Cheng C, Wei Z., "Time-Aware Latent Hierarchical Model for Predicting House Prices", In2017 IEEE International
Conference on Data Mining (ICDM), pp. 1111- 1116, 2017.

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THANK YOU

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