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ML-portfolio/docs/Housing-Price-Regression.md
2026-07-11 17:42:47 +03:30

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Housing Price Regression

End-to-end regression pipeline predicting median house value from California census-block data (20,640 rows).

The question driving the approach

Which features actually predict house value, and can a simple, interpretable pipeline get close to what a more complex model would achieve?

Exploratory analysis

Before modeling, checking which raw features correlate with the target:

Correlation with target

median_income stood out as by far the strongest predictor (r ≈ 0.69) — every later decision, including the stratified train/test split, was built around that finding.

Model comparison via cross-validation

Rather than trusting a single train-set score, both baseline models were evaluated with 5-fold cross-validation to get an honest estimate of real-world error:

Cross-validation MAE comparison

What the tuned model actually relies on

After GridSearchCV tuning, inspecting which engineered features the Decision Tree leaned on most:

Feature importance

The engineered ratio features (rooms-per-house, etc.) pulled real weight here — not just the raw census counts, which justified the extra feature engineering step.

Final result

Test set touched exactly once, after every modeling decision was locked in:

Actual vs predicted

Metric Value
MAE $40,600
RMSE $61,901
R² 0.72
95% CI on RMSE [$59,141 — $64,542]

The scatter shows the model tracks the trend well but underpredicts at the high end — expected, since expensive homes are rarer and harder to fit precisely with limited high-price training examples.

Notebooks