IDEAS home Printed from
   My bibliography  Save this paper

Hedonic Price Indexes for Housing


  • Robert Hill

    (University of Graz)


Every house is different. It is important that house price indexes take account of these quality differences. Hedonic methods which express house prices as a function of a vector of characteristics (such as number of bedrooms and bathrooms, land area and location) are particularly useful for this purpose. In this report I consider some of the developments in the hedonic methodology, as it is applied in a housing context, that have occurred in the last three decades. A number of hedonic house price indexes are now available. However, it is often difficult to see how these indexes relate to each other. For this reason the paper attempts to impose some structure on the literature by developing a taxonomy of hedonic methods, and then show how existing methods fit into this taxonomy. Also discussed are some promising areas for future research in the hedonic field, particularly the use of geospatial data and nonparametric methods for better capturing the impact of location on house prices. The main criticisms of the hedonic approach are evaluated and compared with the repeat sales and stratified median methods. The overall conclusion is that the advantages of the hedonic approach outweigh its disadvantages. Chaque maison est différente. Il est important que les indices de prix de l’ immobilier tiennent compte de ces différences de qualité. Les méthodes hédoniques qui expriment des prix de l'immobilier en fonction d'un vecteur de caractéristiques (telles que le nombre de chambres et salles de bains, superficie et l'emplacement) sont particulièrement utiles à cette fin. Dans le présent rapport je considère certains développements dans la méthode hédonique, telle qu'elle est appliquée dans un contexte de logement, qui se sont produits au cours des trois dernières décennies. Un certain nombre d'indices des prix hédoniques pour l’immobilier est maintenant disponible. Cependant, il est souvent difficile de voir comment ces indices sont liés les uns aux autres. C’est pour cette raison que ce papier tente d'imposer une structure sur la littérature en développant une taxonomie des méthodes hédoniques et montre alors comment les méthodes existantes s'insèrent dans cette taxonomie. Sont aussi discutées certains domaines prometteurs pour les futures recherches dans le domaine hédonique, notamment l'utilisation des données géo-spatiales et de méthodes non paramétriques pour mieux capter l'impact de l'emplacement sur le prix de l'immobilier. Certains des principaux critiques de l'approche hédonique sont évalués et comparés avec les ventes répétées et des méthodes stratifiées médians sont aussi discutées. Dans l'ensemble, on conclut que les avantages de l'approche hédonique l'emportent sur ses inconvénients.

Suggested Citation

  • Robert Hill, 2011. "Hedonic Price Indexes for Housing," OECD Statistics Working Papers 2011/1, OECD Publishing.
  • Handle: RePEc:oec:stdaaa:2011/1-en
    DOI: 10.1787/5kghzxpt6g6f-en

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:stdaaa:2011/1-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.