An analysis of how variables andhome styling affect housing prices
Sammanfattning: Based on the growing interest for home styling and earlier psychological scientific evidence, this study examines how home styling and other variables affect the final price of condominiums in Uppsala. Using multiple linear regression and different statistics, seven different models are analyzed in order to determine whether or not home styling is an influencing factor. To obtain a reliable result, nine other variables such as starting price, living area and floor level etc. are included in the initial model. In addition, these models are investigated statistically to determine if near linear dependence among the regressor variables exists or not. The results show that home styling have a positive impact on the final price of a condominium. The different analytical methods do not always agree, but if looking at the regression result and confidence interval it is obvious that home styling can help increase the final price. Using variable selection, home styling is only included in the model when allowing seven or more variables. The results and analysis from this report is not enough to determine exactly how much home styling affects the final price; since home styling is converted to a dummy variable in the study. The conclusion is that there is a correlation between the response, final price, and the regressor variable, home styling.
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