Non-linearities and interaction effects in Belgian residential rents: an explainable artificial intelligence approach
Grounded in hedonic pricing theory, this study examines non-linear and heterogeneous relationships in residential rents. Using 78,788 Belgian rental listings from 2022 as an empirical application, we compare a linear Ridge model with CatBoost and interpret CatBoost using SHapley Additive exPlanations (SHAP). CatBoost predicts rents more accurately, while SHAP dependence plots suggest a threshold-like association with energy consumption, a U-shaped build-year profile and housing-type heterogeneity in the mobility-score relationship. These findings illustrate how flexible, black-box models with SHAP can complement conventional hedonic specifications.
Authors
- Lieven De Moor (ORCID: https://orcid.org/0000-0002-1290-2971)
- Ian Lenaers (ORCID: https://orcid.org/0000-0001-9188-3870)
Institutions
- Vrije Universiteit Brussel (BE)
Publication Details
- Journal
- Applied Economics Letters
- Published
- 2026-11-02
- DOI
- https://doi.org/10.1080/13504851.2026.2758727
- Primary Topic
- Housing Market and Economics
- Type
- article
- Field-Weighted Citation Impact
- 0.00