Spatial clustering of housing prices reveals hidden risks in popular neighborhoods.
The study looked at how housing prices in Germany are affected by where they are located. They used a special model to see if the variance (difference) in prices is related to the location of the houses. They found that the variance in prices is not the same everywhere, but is higher in certain neighborhoods with more diverse apartments. Understanding these differences can help make better predictions about housing prices and account for risks when valuing many properties at once.