We use a finite mixture model to identify latent submarkets from household demographics that estimates a separate hedonic regression equation for each submarket. The method is a relatively robust empirical tool to extract submarkets from demographic information with far less effort than...

A root concern of hedonic property value models is that some commonly-used estimators aggregate very diverse households into a single regression, which may explain the marked differences in implicit price estimates for the same housing attributes across studies. In this paper, we extend a model...