Do we need to understand "black box" Automated Valuation Models​? Another perspective on Zillow’s algorithm problem

As a real estate online marketplace, Zillow has been the data forerunner of the industry. Its algorithm-based tools, such as Zestimate, not only generate profits for the company, but also build a solid connection with the growing data science community. However, the core algorithm failed to accurately predict house prices at a large scale. We explore the possible reasons why it failed from the basics of algorithms.