Influencing Factors of California Housing Prices in 1990: a Multiple Linear Regression Analysis

In 1990, it was a hot topic to study the housing prices of blocks in California. That was mainly because of the recession period of the U.S. economy in 1990, which affected consumption and personal income and impacted the real estate market. The purpose of the study is to find factors that affect the housing price for blocks in California in 1990 with the consideration of properties of the house itself, the income of buyers, and the geographic surroundings. The paper uses the housing price impact theory and multiple linear regression method to study the influencing factors of the California housing price in 1990. This research concludes that median house value is positively correlated with median income, median house age, total bedrooms, households, and distance to San Diego, while negatively correlated with total rooms, population, distance to the coast, and Los Angeles. In addition, there is no statistically significant relationship between the median house value and distance to San Jose. In fact, it gives very specific results about the impact of each specific factor involved in our model. However, the general ideas like the impact of the whole dwelling structures do not involve in this study.