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