The Methodology of Housing Value Assessment: An Analysis

The application of multiple regression analysis is illustrated as a means of addressing the goals of consistency and equity in assessment and in attaining the modeler's objective of parsimony. This is accomplished by presenting examples using data maintained by a local assessor's office. The issue of whether a linear model formulation suffices for such purposes is discussed, and the conclusion is that the extra time and effort required for nonlinear estimation may not provide sufficient improvement in predictive accuracy to warrant its application. The regression technique and the modeling strategy used to construct the forecast confidence interval can be implemented easily in an electronic spreadsheet on a microcomputer.