Determine the Relationship between Population, Residents Income and the Price of Real Estate using Linear Regression

Abstract

People are constantly looking for the perfect spot to live, but the price of a home isn't always in a reasonable range for them to afford it. For example, in Montreal, the price of a home is relatively higher, while in Northern New Brunswick, it is relatively lower. As is known to all, the population and income of people are different in each region. As a result, there could be a connection between the size of the population, the amount of money individuals make, and the cost of real estate. To help people to find the proper room to live, it is very meaningful to determine the factors that influence the price of a home. To start with, the table of population and peoples income in 18 different regions is listed. According to the table, the graphs of the relationship between population, peoples revenue and housing costs are sketched by using R studio. Finally, using linear regression, the conclusion that the more people live in a region, the higher price of a home is. Besides, the more income people have in a region, the higher price of a home is.