Using Multiple Regression to Estimate Land Values

Gwardeny says multiple regression analysis was a standard method he typically used, of which this specific paper is just one example. The basic idea here is to take a matrix of numbers called a kelnel and run that over every pixle in a sauce image. So let's apply the principle to land valuations. If you have a map with lots of transaction data of pure land sales, defined as sales of either vacant land or tear down properties where the building value is essentially zero, then you can use a special kernel filter to smoothly interpolate land values across the region. But for cases where we know a priori that land ues change smoothly, this method is appropriate.