Homogeneity analysis of localities in the city of Rio de Janeiro in relation to rental prices: a case study

• Main Author: Giovani Glaucio de Oliveira Costa
• Format: Article
• Language: English
• Published: Universidade Estadual Paulista 2014-07-01
• Series: GEPROS: Gestão da Produção, Operações e Sistemas
• Subjects: Analysis of qualitative data. Analysis of homogeneity. Homogeneity of localities in the city of Rio de Janeiro.
• Online Access: http://revista.feb.unesp.br/index.php/gepros/article/view/945/549

This article aims to present the application of Homogeneity analysis as an alternative to the analysis of qualitative data. Homogeneity analysis is a multivariate technique that has two basic purposes: dimensionality reduction and structural analysis. The work examined actual values of average rents for residential sites in 24 districts of the city of Rio de Janeiro in December 2010 for living room and bedroom, living room and two bedrooms and living room and three bedrooms. The study aimed at the grouping of localities due to similarity in their average rents. As the result of the analysis, we identified 3 homogeneous groups, coexisting in the same space. Profile 1 is formed by neighborhoods with rents in lower ranges. Most of the neighborhoods in this profile are on the westside and northside. Profile 2 is formedby neighborhoods with rents in the intermediate ranges. They include the south zone and Barra. Profile 3 is formedby neighborhoods with rents in higher ranges. They include only neighborhoods in the South side. These results are important to highlight the importance of Homogeneity analysis as to decisions by real estate administrators.