The hedonic method establishes a relationship, using an econometric model, between the market price of construction and characteristics of structure, which allows to assess the implicit value of these various characteristics.

For each type of construction (pure individual, grouped individual and collective), the logarithm of the average price of the building is modeled using different explanatory variables (logarithm of the average area, location of the building in one of ZEAT, number of levels of living space, basement, garage, boiler type, conventional heating, wall coverings and flooring, paint, non-equipped kitchen, the living standards of the construction site and time variables of the six quarters covered, etc.).

The temporal evolution of prices is captured in the model by the indicator variables of the dates. Such a method is already used by INSEE, especially for the prices of second-hand dwellings. It ensures the inclusion of changes in quality of housing.

The model coefficients are re-estimated each quarter over a moving window of six quarters, the models themselves are reviewed periodically. Hedonic CCI of all new housing construction results from the aggregation according to chain-linked Paasche technique of these three sub-indices in proportion to the importance of each type.