National patterns of house price dynamics and levels mask considerable heterogeneity across local areas and markets. This paper, which is part of a project on urban growth and development, analyses the dynamics and levels of house prices in Italy at territorial level over the past fifty years and describes the cyclical differences and trends in the differentials in house price levels, also from an urban perspective.
The analysis shows strong heterogeneity in housing cycles between different cities and macro areas in Italy, with the results for the big cities and the North West and Centre closer to the national averages compared to the South and the North East. Price levels show marked differences across cities of different size and across areas. The differences between areas, which are fewer when we consider the smaller cities, persist when we take into account some socioeconomic characteristics.