Metropolitan Trends Analysis for Home Improvement Spending in 2015 and Projection for 2017

It a broader data and I used a subset of it in my previous post published in Towards Data Science.Key Features of Interest in This Data Set:25 US metropolitan areasMedian income: 2015Median home value: 2015‘Discretionary (kitchen, bathroom, room additions, and outside attachments)’, ‘Replacement(exterior, interior, and system and equipments)’, and ‘Other(disaster repair, improvements to lot or yard)’ spending categoriesTotal expenditure on home improvement in 2015Projected Real Annual Percent Change, 2017Key Takeaways from my Analysis:Interactive graphs for a closer look at the numbersDiscretionary and replacement spending show negative relationMedian home value and median income are relatedAverage expenditure per owner on home improvement and median home value don’t tell the whole story2015 home improvement expenditure trends and 2017 projectedCorrelation matrixAttached Jupyter notebook at the end to see the raw workLets start digging into analysis..Below is the correlation matrix table for various features..It’s interesting to see a negative correlation between median income and percent of expenditure on replacement category..At the same time, median income and expenditure on discretionary home improvement shows a positive correlation..Does it mean more people like remodeling their kitchen/bath/ or add another room/outdoor attachment as their income increase?.I didn’t analyze sufficient data to conclude that.The graph below shows the intensity of correlations..Some of the negative correlations are surprising to me..For example, median home value and expenditure on replacement category..It will be interesting to investigate if spending on beautifying the interiors like kitchen, adding more rooms make drives the home value up..This is out of scope of my analysis in this post.First graph show a clearly negative relationship between discretionary versus replacement expenditure percentages..Discretionary expenditure includes kitchen, bathroom and outdoor patio etc, while replacement expenditure consists of items like roofing, windows, insulation..From the chart, it looks like that homeowner can afford/choose to spend on either one category not both.Some metropolitan areas are more expensive/valued more than the others.. More details

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