3 ms·
the theory is worth very little. you could identify two other random density factors (like cigarette butts and chelsea fans) and come up with some heatmap to id
by timwaagh 11y ago
the theory is worth very little. you could identify two other random density factors (like cigarette butts and chelsea fans) and come up with some heatmap to identify the best value houses. only time-series data could give some indication and then you would still have to test it (and then the market would price in your findings shortly after they are published. this kind of arbitrage rarely lasts long).
- lujim 11y agoI don't think those are random density factors. I don't believe that darts were thrown at a wall with words written on them and they landed on "Coffee Shops" and "Fried Chicken". I think the analysis started with the assumption that Coffee shops would be found in nicer areas and Fried Chicken would be found in rougher areas. Then the analysis was started to evaluate that hypothesis. It's OK that areas of with different economic conditions may have different types of businesses. Buying a house next to a check cashing shop or a pay day lender will nearly 100% guarantee you aren't living in the best neighborhood.