Forms and Functions of the Real Estate Market of Palermo (Italy). Science and Knowledge in the Cluster Analysis Approach

Abstract

The analysis of the housing market of a city requires suitable approaches and tools, such as data mining models, to represent its complexity which derives on many elements, e.g. the type of capital asset-house is a common good and an investment good as well, the heterogeneity of the urban areas—each of them has own historical and representative values and different urban functions—and the variability of building quality. The housing market of the most densely populated area of Palermo (Italy), corresponding to ten districts, is analyzed to verify the degree of its inner homogeneity and the relations between the quality of the characteristics and the price of the properties. Five hundred sets of housing data have been collected and elaborated by cluster analysis with the aim of describing the structure of the housing market in each district and developing operational tools for the implementation of urban policies and public-private investments.