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Heterogeneity in hedonic modelling of house prices: looking at buyers’ household profiles

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Abstract

This paper introduces household-level data into hedonic models in order to measure the heterogeneity of implicit prices regarding household type, age, educational attainment, income, and the previous tenure status of the buyers. Two methods are used for this purpose: a first series of models uses expansion terms, whereas a second series applies Geographically Weighted Regressions. Both methods yield conclusive results, showing that the marginal value given to certain property specifics and location attributes do vary regarding the characteristics of the buyer’s household. Particularly, major findings concern the significant effect of income on the location rent as well as the premium paid by highly-educated households in order to fulfil social homogeneity.

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Authors and Affiliations

  1. Department of Social and Preventive Medicine, Université de Montréal, 3875, St-Urbain, bureau 328, Montréal, Québec, H2W 1V1, Canada

    Yan Kestens

  2. Centre de Recherche en Aménagement et Développement, Université Laval, 1630-Pavillon Félix-Antoine-Savard, Québec, Québec, G1K 7P4, Canada

    Marius Thériault

  3. Faculty of Business Administration, Université Laval, Québec, Québec, G1K 7P4, Canada

    François Des Rosiers

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  1. Yan Kestens
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  2. Marius Thériault
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  3. François Des Rosiers
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Correspondence to Yan Kestens.

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Kestens, Y., Thériault, M. & Des Rosiers, F. Heterogeneity in hedonic modelling of house prices: looking at buyers’ household profiles. J Geograph Syst 8, 61–96 (2006). https://doi.org/10.1007/s10109-005-0011-8

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  • DOI: https://doi.org/10.1007/s10109-005-0011-8

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