A New XGBoost Inference with Boundary Conditions in Real Estate Price Prediction

Real estate price prediction takes an important role in the economy that can drive up and down the stock prices and even generate disruptive economic events. Many researchers have tried to understand the pricing mechanism with machine learning techniques such as support vector machine, neural network, random forest, and AdaBoost. The boundary problem, on the other hand, makes the pricing scheme more complicated, and this trend is accelerated especially in the situation of population decline in Japan. In this paper, we discuss how we could approach the boundary problem in real estate prediction. We propose a new comprehensive inference model extending and adapting XGBoost to the domain that has the boundary conditions problem by utilizing the distance between the instances in the domain data set to make the layers of bumpy boundaries smooth for more accurate predictions and robustness against the domain data set. The experiments result showed our proposed method performed well on both hypothetical data sets and actual real estate price data. © 2022 Institute of Electrical Engineers of Japan. Published by Wiley Periodicals LLC.