I’ll break this into three clean parts:
R,
what “earth” usually means, and
how appraisers actually use this stuff in practice.
1.
R is an open-source statistical programming language that’s very strong at:
- Multiple regression (OLS, log-linear, nonlinear)
- Hedonic price modeling
- Diagnostics (multicollinearity, heteroskedasticity, outliers)
- Graphing residuals and leverage points
- Automating repeatable analysis
In appraisal terms, R is often used for:
- Market condition (time) adjustments
- Location or amenity modeling
- Paired-sales alternatives when data is messy
- Mass appraisal / hybrid studies
- Litigation support (transparent, reproducible math)
R itself is just the engine — the real power comes from
packages (libraries).
2. What appraisers usually mean by
Short answer:
But there
are two very common things people are usually referring to when they say this.
A)
This is probably what you’re hearing — just said imprecisely.
In
R,
earth is a real package, and it stands for:
What it does:
- Builds nonlinear regression models
- Automatically detects breakpoints and interactions
- Allows curves instead of straight lines
- Handles complex market behavior better than simple OLS
Why appraisers care:
- Real estate markets are not linear
- Price response to size, age, location often changes at thresholds
- MARS can model:
- diminishing returns to GLA
- age effects that flatten out
- neighborhood boundary effects
Important caution
In
lending appraisals, especially conventional SFR work:
- earth models can be hard to explain to underwriters
- USPAP requires explainability
- MARS is better suited to:
- market studies
- litigation support
- complex or atypical property analysis
- mass appraisal environments
Many residential reviewers will
reject a model they can’t easily follow, even if it’s statistically superior.
B) Confusion with
Sometimes “package earth” is sloppy shorthand for
spatial or geospatial tools, such as:
- GIS-based regression
- Latitude/longitude modeling
- Distance-to variables (coast, CBD, freeway, hazards)
- Google Earth–derived location attributes
In that case, they may mean:
- R spatial packages (e.g., for mapping or distance modeling)
- External GIS + regression workflow
- Location intelligence layered into valuation
This is
much more common in litigation or environmental proximity cases (airport noise, coastline, flood zones, Superfund sites — which you’ve dealt with).
3. How this fits into
Here’s the honest appraisal-world breakdown:
Typical residential lending appraisal
- Simple OLS regression (or paired sales)
- Possibly done in:
- Excel
- SPSS
- R (basic lm())
- Heavy emphasis on explanation, not model elegance
Advanced / litigation / consulting appraisal
- R is common
- Packages like earth may be used
- Models are:
- documented
- tested
- defensible under cross-examination
- Regression supports opinions, not replaces judgment
Mass appraisal / AVM / assessor work
- earth (MARS), random forests, boosted trees all common
- USPAP burden is different
- Explainability handled statistically rather than narratively
Bottom line
R = powerful statistical language used for regression in appraisal
earth is an R package, not a generic “earth package”
It models nonlinear relationships, which is powerful but harder to defend in lending appraisals
There is no standalone appraisal product called “Package Earth”