A guy just transcribed 30 years of for-rent ads. Here’s what it taught us about housing prices
Michael Andersen

The green line in chart 2 above that you claim is the answer to the universe is based on the quality of the data of units, wages and employment (0.377*(units)^2 — 2.522*(wages)^2+1.892*(employment)+1.541).

I respect the dude for doing the work to attempt to find good data for regression (anybody who takes an elementary regression class will have done a very similar problem in the first few weeks with made-up data) and for attempting to get very difficult to obtain data. But the analysis is overly simplistic. For example, consider other very important variables — such as average sq. ft. of each apartment, avg. floor, proximity to parking, proximity to public transport, etc… — are you telling me that these are relatively unimportant or invariable through time?

Anybody who has done basic regression should know that the more variables you throw into your mix, the better your R-squared. That doesnt make it correct.

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