ANOVA Hypothesis Test to Determine the Price of Houses in Suburbs and the City

Living near big cities may be a positive side for homeowners and people using real estate as investments. The increase in population has led to a decline in land and space, resulting in a large demand for available resources. City industry and market attract buyers who want to live near commercial real estate. Different wage levels between urban and suburban work may lower suburban housing prices.

If you live in a larger city, you can pay the same number (or more) of apartments and suburban houses. In fact, the average house in the suburbs in the United States is about $ 230,000 and the average housing in the city is $ 411,000. The price per square foot in the suburbs may be much lower.

Suburban life has always been considered a better life. According to the real estate website (2008), larger and more affordable housing can jump to the suburbs compared to cities. In addition, living in the suburbs will provide more time for families gathering. In a comfortable environment, neighbors also know each other. This will promote a healthy relationship between the communities and they will be of great help in the future. People living here have time to spend with family and friends rather than work. At the same time, the suburban lifestyle is healthier than the city. This may be because the population living in the suburbs is less than the population living in the city. Their lifestyles are simple and their living expenses are reasonable. Compared to urban life, people live a more relaxing life.

People in London, people in New York, people in Sydney are dissatisfied with rising living expenses. For example, in the suburbs of Australia, we know that their resources and the agricultural industry are very popular and their house prices are also very popular. Therefore, the best way to measure affordable prices for housing prices is to compare the ratio of house prices to average income. The ratio of house prices to income is a good indicator of citizen's affordable price to purchase real estate.