Module 4 Final Project

By David Cuervo

Background

Select the 5 best zipcodes in Austin to invest in.

Contents of Repository

• Time folder containing original Zillow data
• Notebook containing the code used for preprocessing and modeling
• PDF of presentation

Approach

• Used data from Zillow from 1996 to 2018
• Filtered the data for zipcodes in Austin, TX
• Changed the format of the date time data
• Reshaped the data from wide to long
• Used a function that would select the best parameters for the ARIMA model based on the mean squared errors
• Visualized the forecast of housing sale values for the next 3 years
• Calculated the predicted return on investment
• Repeated for all 38 zipcodes in Austin
• Selected the top 5

Best forecast in Austin: 78741

Conclusions

• Top 5 zipcodes with highest expected return on investment: 78751, 78758, 78722, 78702, 78741
• Any zipcode in Austin is increasing in value