" I was trying to figure out if it's possible to turn this concrete pad into a usable space. "

Useable as in for what? Table, chairs and a BBQ? Closed in? What are you thinking?

It is odd looking. Maybe the previous owners added that area of concrete after the rest was already there, or made it larger at some point. I can see having a small concrete pad at the door, but it doesn't need to be that large. I don't think that means you have to do anything with it. Since your neighbors are close and your car is frequently parked there I don't think it would make a very enjoyable patio area. If you enclosed it to get privacy you will be narrowing the space for the car. I would look for opportunities for outdoor activities on the back of the house.

Maybe add a pergola and some nice planters and use it as an are for you r garbage cans and deliveries - sort of a mini storage that doesn't block the windows.

Do you garden? That could be a great area for a potting station and even some table height vegetable gardens.

Embrace it. If you can't remove it make it look like you did this on purpose. A pergola or even patio furniture. Add planters, or a movable fire pit, comfortable chairs...

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Make a movable garden there - in pots. Put up trellis and some potted flowers and since it looks like it gets good sun, maybe tomatoes and other veggies. Place a bench there among the flowers, maybe a waterfall or fountain.

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Perhaps a pergola with a slat backing for privacy, something like below, plus some landscaping around that area:

This appears to be your back door, not the one you want guests using. Adding an open pergola over the space will allow light in the windows,. Then lay an outdoor rug maybe even a grass looking area rug and some seating there for your personal use. Can you park the car to the left rater than in front of that space? Parking your car there complicates things visually.

You could have a retractable awning or solar sail shade.

What do you want to use it for? Do you need a place to sit outside solo and drink coffee, to have raised beds, a container garden, a table to eat at, a hammock? It really depends on what activities you need space for around the outside of your home. Say more please.