We’ve recently conducted a correlation analysis on Boston City’s economic data from 2013 to 2019, revealing some intriguing relationships between the labor market, tourism, and housing prices. Key highlights include a strong negative correlation between total jobs and housing prices, and an unexpected positive correlation between the unemployment rate and housing prices. These findings suggest a complex interplay of economic factors beyond conventional expectations.
Key Findings from the Correlation Analysis:
A significant negative correlation (-0.87) between total jobs and the unemployment rate aligns with economic expectations – as employment opportunities rise, unemployment naturally tends to fall.
Interestingly, total jobs show a negative correlation (-0.76) with median housing prices. This intriguing finding suggests that an increase in employment does not necessarily drive up housing prices, hinting at a more complex economic interplay.
The tourism sector, represented by Logan passengers and international flights, is positively correlated with each other (0.94), indicating a strong link between local and international travel.
Surprisingly, both tourism indicators negatively correlate with median housing prices (-0.55 and -0.70), suggesting that increased tourism activity might not directly correlate with higher housing prices.
A Puzzling Relationship:
One of the most striking findings is the positive correlation (0.83) between the unemployment rate and median housing prices. This suggests a rather complex economic scenario where the housing market dynamics may not be solely driven by local employment conditions.
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