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The current paper applies the hedonic approach to five rental submarkets in the Quebec region, namely Quebec City, Vanier, Ste-Foy, Beauport and Charlesbourg. The databank consists of information obtained from property owners via a yearly survey; some 32,000 rental units and nearly 3,300 buildings are included in the study. Data provide detailed information on building and apartment size, age, location, services provided, quality of premises and type of occupants; vacancy rates can also be derived from the bank. In addition, resorting to a regional geographic information system permits integration of neighborhood effects into the analysis. Findings suggest that significant differences in implicit prices do exist across market segments. However, while consistent results are obtained for major rent determinants, collinearity clearly emerges with respect to some rental attributes. Using a regression-based paired comparison approach, it is possible to identify stable hedonic prices for main rental services; the coefficients thus obtained are then forced back as constraints into the service-adjusted model, thereby improving its overall consistency and practicability.
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