Assessing hedonic indexes for housing

by Charles W. Noland

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback49 pages $23.00 $18.40 20% Web Discount

Presents a hedonic index for housing services fit to the 1975 rental housing market in St. Joseph County, Indiana, one of the Housing Assistance Supply Experiment's two sites. Comparing the index with one for Brown County, Wisconsin, shows that the two are very similar and that most of the coefficients do not differ significantly between the two indexes. The dissimilarities, however, should serve as a warning to analysts considering using a hedonic index in a market other than the one for which it was fit. An analysis of renters' expenditure patterns for summary attribute groups indicates that expenditures for quality increase more than those for space as income increases. At the same time, renters tend to forgo employment accessibility for higher quality neighborhoods. The expenditure analysis provides an excellent example of hedonic indexes' usefulness for analyzing multidimensional commodities.

This report is part of the RAND Corporation Note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.