Machine Learning, Architectural Styles and Property Values

Thies Lindenthal () and Erik B. Johnson
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Thies Lindenthal: University of Cambridge
Erik B. Johnson: University of Alabama

The Journal of Real Estate Finance and Economics, 2025, vol. 71, issue 3, No 1, 353-384

Abstract: Abstract This paper couples a traditional hedonic model with architectural style classifications from human experts and machine learning (ML) enabled classifiers to estimate sales price premia over architectural styles, both at the building and the neighborhood-level. We find statistically and economically significant price differences for houses from distinct architectural styles across an array of specifications and modeling assumptions. Comparisons between classifications from ML models and human experts illustrate the conditions under which ML classifiers may perform at least as reliable as human experts in mass appraisal models. Hedonic estimates illustrate that the impact of architectural style on price is attenuated by properties with less well-defined styles and we find no evidence for differential price effects of Revival or Contemporary architecture for new construction.

Keywords: Applied machine learning; Aesthetic preferences; Architectural externalities; Automatic valuation models (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jrefec:v:71:y:2025:i:3:d:10.1007_s11146-021-09845-1

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DOI: 10.1007/s11146-021-09845-1

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