Hands On "AI Engineering"

Hands On "AI Engineering"

180-Day AI and Machine Learning Course from Scratch

Day 47: Project Day - Predict Housing Prices

Feb 09, 2026
∙ Paid

What We’ll Build Today

  • A production-ready housing price prediction system using multiple linear regression

  • Feature engineering pipeline that processes raw property data into ML-ready features

  • Model evaluation framework with performance metrics and validation strategies

  • Deployment-ready prediction API that mirrors real estate tech platforms

Why This Matters: From Classroom to Zillow’s Backend

Every time you check a home’s estimated value on Zillow, Redfin, or Realtor.com, you’re interacting with regression models processing millions of housing transactions. Zillow’s “Zestimate” system handles over 100 million property valuations daily, using the exact techniques you’re implementing today. The difference? Their models run on distributed systems with thousands of features. But the core math? It’s the multiple linear regression you learned yesterday.

Here’s the production reality: When Zillow’s model predicts a house price incorrectly by even 5%, they risk losing millions in their home-buying program (Zillow Offers lost $881 million in Q3 2021 partly due to pricing errors). Your task today is building a system that demonstrates the same principles they use to minimize prediction error, handle missing data, and validate model performance—just at a smaller scale.


User's avatar

Continue reading this post for free, courtesy of AI Engineering.

Or purchase a paid subscription.
© 2026 AIE · Privacy ∙ Terms ∙ Collection notice
Start your SubstackGet the app
Substack is the home for great culture