Predicting Housing Prices with ARIMA
For my most recent project, I was assigned the task of analyzing a set of housing prices from various ZIP codes. The goal was to find the top five ZIP codes for investment using ARIMA modeling. I'd like to use this space to walk through my thought process while working through the problem, the methods I used, and give particular attention to the exploratory data analysis step because it was very interesting in this case. The first point of interest with this problem is that question is intentionally vague and required me to come up with a few answers before even attempting to answer it. First of all, in order to evaluate the best investment it is necessary for me to choose a metric to use. In this case, I've decided to use return on investment to measure the profitability, and adjust it based on risk. I've chosen five years as the time frame to target since this is a fairly standard investment period and it's short enough that the model can still predict with de