Inside Airbnb Boston 2021: Building a Machine Learning Price Predictor model for Boston Listings

Building in Boston. Taken @ 2019.12.12

What is the article about?

Why should the reader learn this topic?

  • For people that are interested in how to build a price estimator or predictor model.
  • For Airbnb users (host, end-user, traveler) to better understand how to price their room, compare and select rooms within Boston, even negotiate with hosts.
  • For agency that wants to start Boston-based Airbnb business.
  • For real estate property people that want further discover patterns in the Boston property domain.

What are the prerequisites?

CRISP-DM

  1. Business understanding
  2. Data Understanding
  3. Data Preparation
  4. Modelling
  5. Evaluation
  6. Deployment

Business Understanding

Data Understanding

Data Preparation

  1. Subset numerics dataset.
  2. Subset categorical dataset and flatten it to a one-hot set.
  3. Re-combine numerics set and categorical (encoded) set.

Modelling

Popular neighborhoods for Boston Listings 2021

  1. Dorchester 418
  2. Downtown 293
  3. Roxbury 263
  4. South End 235
  5. Brighton 232
  6. Jamaica Plain 215
  7. Back Bay 195
  8. East Boston 180
  9. Allston 158
  10. Beacon Hill 137
  11. South Boston 135
  12. Fenway 110
  13. North End 80
  14. Charlestown 70
  15. Roslindale 56
  16. Mission Hill 55
  17. Bay Village 50
  18. South Boston Waterfront 47
  19. Chinatown 43
  20. West End 38

Popular (high demand) property types for Boston Listings 2021

  1. Entire rental unit 1283
  2. Private room in rental unit 526
  3. Private room in residential home 378
  4. Entire condominium (condo) 264
  5. Entire serviced apartment 184
  6. Entire residential home 126
  7. Private room in condominium (condo) 71
  8. Entire guest suite 47
  9. Private room in townhouse 38
  10. Room in boutique hotel 36

Common Essential Amenities

  1. Smoke alarm 3017
  2. Wifi 2996
  3. Long term stays allowed 2960
  4. Carbon monoxide alarm 2813
  5. Heating 2806
  6. Essentials 2804
  7. Kitchen 2795
  8. Hangers 2728
  9. Hair dryer 2581
  10. Air conditioning 2553
  11. Iron 2505
  12. Shampoo 2387
  13. Hot water 2291
  14. Microwave 2172
  15. Refrigerator 2151
  16. Washer 2097
  17. Dedicated workspace 2096
  18. Dryer 2048
  19. Coffee maker 1991
  20. Dishes and silverware 1916

Distribution of Boston Airbnb Listing Price 2021

  • Right skewed shape.
  • $60-$80 is the most offering range,
  • Overall, $80 — $160 are popular,
  • $180–220 is also quite common. Since Boston is such a higher standard city.
  • Listing offerings drop significantly after > $220.
Lobster in a Boston restaurant (Union Oyster House). Taken @ 2019.12.12
  1. Independent Variables (All the variables that would impact Dependent Variable)
  2. Dependent Variable (In this case, the ‘price’)

Evaluation

  • R-squared for train data score: 0.62
  • R-squared for test data score: 0.60

Deployment

Conclusion

Street of Boston. Taken @ 2019.12.12

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I occasionally write about software, web, blockchain, machine learning, random thoughts.

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Weiming Chen

Weiming Chen

I occasionally write about software, web, blockchain, machine learning, random thoughts.

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