Property names affect value significantly more than you may have thought. Skyline AI CTO Or Hiltch discusses an AI-based research project he initiated here at Skyline AI, where his team dug deep into what exactly is in a name.
Everyone knows not to judge a book by its cover and that true beauty lies within. But is the same true for the names given to multifamily residential properties? To what extent, if any, does a mere name affect the value of these properties?
As is turns out, quite a bit. We did some deep research on the topic of multifamily names and their affect on value and overall desirability, and when we entered every multifamily building’s name in the U.S. into our models, the name itself showed a rather strong correlation on the price of the asset compared to similar buildings.
In our estimation, this is only one example of how machine learning can help us understand the nuances of property pricing. Using AI, we can break down even the seemingly unimportant components in a way that reveals broader trends - giving greater insight into property value and even allowing us to make accurate predictions of real estate assets on a broad scale.
For more on the results and the data analysis that went into this study, check out this writeup on Propmodo.