Regional vs. National Housing Price Comparison

This document is a Regional vs. National Housing Price Comparison Report prepared for MAT 240, focusing on the differences in housing prices and square footage between the East North Central region and national averages. The primary objective is to evaluate whether regional housing prices are lower than the national median and whether the average square footage of homes in the region significantly deviates from national standards.

Methodology

The study employs statistical hypothesis testing using one-tailed and two-tailed t-tests to compare housing prices and square footage. A random sample of 500 house listings was selected from a dataset of 1,001 entries using Excel’s randomization function. The statistical tests are conducted at a 95% confidence level (α = 0.05) to determine the significance of observed differences.

Key Findings

• Housing Prices: The one-tailed t-test results indicate that the average home price in the East North Central region is significantly lower than the national median ($288,407). A p-value of zero confirms the rejection of the null hypothesis, supporting this conclusion.
• Home Square Footage: The two-tailed t-test reveals that the average home size in the region differs significantly from the national average. The regional mean is 1,809.5 square feet, compared to the national average of 1,944 square feet. The 95% confidence interval (1,778.2 – 1,839.8 square feet) further supports this finding.

Conclusion

The study highlights how local market dynamics, economic conditions, and housing supply impact real estate trends. The findings suggest that regional variations in pricing and home sizes are influenced by factors such as housing demand, development patterns, and affordability. These insights provide valuable guidance for real estate professionals, investors, and policymakers in making informed decisions based on regional housing trends.