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Addressing issues of social diversity, we introduce a model of housingtransactions between agents who are heterogeneous in their willingness to pay.A key assumption is that agents' preferences for a location depend on both anintrinsic attractiveness and on the social characteristics of the neighborhood.The stationary space distribution of income is analytically and numericallycharacterized. The main results are that socio-spatial segregation occurs if --and only if -- the social influence is strong enough, but even so, some socialdiversity is preserved at most locations. Comparison with data on the Parishousing market shows that the results reproduce general trends of pricedistribution and spatial income segregation.

Modeling urban housing market dynamics: can the socio-spatial segregation preserve some social diversity?