Analyzing Influencing Factors and Inter-city Differences of House Prices Based on Statistical Methods

Abstract

With the acceleration of urbanization and the improvement of residents’ living standards, house prices have become a key factor affecting the quality of life of urban residents. Differences in house prices between cities can be attributed to a variety of factors, including, but not limited to, the level of economic development and residents’ incomes. To gain a deeper understanding of the variability of house prices and its determinants across cities, this study selects five representative cities in the UK for analysis. It explores whether there are statistically significant differences in house prices through Analysis of Variance and applies multiple linear regression modeling to assess the specific roles of each influencing factor on house prices. This analysis aims to provide policymakers and market participants with an in-depth understanding of the trends in house price changes, thereby supporting the effective allocation of real estate resources and the balanced development of the economy. The results not only reveal significant differences in house prices across cities but also identify key factors that significantly impact house prices, providing insights to promote the healthy development of the real estate market.