Clustering of the Stockholm County housing market

Abstract: In this thesis a clustering of the Stockholm county housing market has been performed using different clustering methods. Data has been derived and different geographical constraints have been used. DeSO areas (Demographic statistical areas), developed by SCB, have been used to divide the housing market in to smaller regions for which the derived variables have been calculated. Hierarchical clustering methods, SKATER and Gaussian mixture models have been applied. Methods using different kinds of geographical constraints have also been applied in an attempt to create more geographically contiguous clusters. The different methods are then compared with respect to performance and stability. The best performing method is the Gaussian mixture model EII, also known as the K-means algorithm. The most stable method when applied to bootstrapped samples is the ClustGeo-method.