I have some data for housing prices from sales for given areas and I also have data on several characteristics of these houses. I was wondering if there was a way to construct a simple housing price index using hedonic regression?


If you mean a housing price index by area the you could simply use area dummies and run a regression

$$ p_i = X_i^\top \beta + \mu_a + \epsilon_i$$

for the $i=1,...,N$ housing sales and then use the area dummy estimates $\hat \mu_a$ as index values.

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