Find Desirable Neighbourhoods for Airbnb Guests in New York

K-means Clustering Analysis

In this part, we clustered neiborhoods by Airbnb stats, trying to find desirable neighbourhoods for different types of Airbnb guests. Firstly, we selected the price_per_person,reviews_per_month,review_scores_rating and count as our features, and calculated mean value of thoses featuress by neighbourhood. Secondly, a K-means cluster analysis is performed and the results are devided into 5 labels:

For each features, we could calculate the average value per cluster, the results is as follows:

group_cluster.groupby('label')['price_per_person'].mean().sort_values()

label
0 31.247056
4 33.483703
1 37.457584
2 53.109358
3 80.434985
Name: price_per_person, dtype: float64

group_cluster.groupby('label')['review_scores_rating'].mean().sort_values()

label
4 91.364327
2 93.701058
3 94.164047
0 94.923690
1 95.913784
Name: review_scores_rating, dtype: float64

group_cluster.groupby('label')['reviews_per_month'].mean().sort_values()

label
3 1.120334
1 1.267650
2 1.274230
4 1.660396
0 2.890525
Name: reviews_per_month, dtype: float64

group_cluster.groupby('label')['count'].mean().sort_values()

label
0 37.510638
4 81.396226
1 106.000000
3 251.360000
2 1938.222222
Name: count, dtype: float64

Recommendations for Potential Airbnb Guests

Based on the clustering results, we try to divide our potential Airbnb guests into several categories, and recommended different neighborhoods for each, respectively.

• For price-sensitive Airbnb guests, or people who pursue the highest cost-effective living experience,the neighbourhoods with label 0 might be their best chioce, since the Airbnb price per person for those areas is the lowest, and the review scores are also relatively high. However, It is worth noting that the Airbnbs in those neighbourhoods might be in high demand, since the Airbnb supply in those areas is small (low count), while the occupancy rate might be really high (with a high reviews_per_month).

• For quality-conscious Airbnb guests, the neighbourhoods with label 1 might be their best chioce. The Airbnb in those areas are of high-quality and moderate price. With a reasonable supply and Airbnb count,they don’t have to worry too much about those Airbnbs being booked.

• For travellers who do not care much about price or quality, we would recommand the neighbourhood with label 2, since there are plenty of available Airbnbs and the Airbnbs in those areas are close to famous New York attrations,though the price or quality of Airbnb might not be so ideal.