Michael Scott Kincaid
Department of Economics
Institutional Affiliation: Harvard University
NBER Working Papers and Publications
|October 2018||Computer Vision and Real Estate: Do Looks Matter and Do Incentives Determine Looks|
with Edward L. Glaeser, Nikhil Naik: w25174
How much does the appearance of a house, or its neighbors, impact its price? Do events that impact the incentives facing homeowners, like foreclosure, impact the maintenance and appearance of a home? Using computer vision techniques, we find that a one standard deviation improvement in the appearance of a home in Boston is associated with a .16 log point increase in the home’s value, or about $68,000 at the sample mean. The additional predictive power created by images is small relative to location and basic home variables, but external images do outperform variables collected by in-person home assessors. A home’s value increases by .4 log points, when its neighbor’s visually predicted value increases by one log point, and more visible neighbors have a larger price impact than less visible...