I am working on a ML problem to predict house prices and Zip Code is one feature which will be useful. I am also trying to use Random Forest Regressor to predict the log of the price.
However, should I use One Hot Encoding or Label Encoder for Zip Code? Because I have about 2000 Zip Codes in my dataset and performing One Hot Encoding will expand the columns significantly.
When to use One Hot Encoding vs LabelEncoder vs DictVectorizor?