This paper examines how the presence of a unanimous characteristic
affects housing locations. An example of the unanimous characteristic,
considered in the paper, is the regional educational environment. Our
findings are as follows. First, if the relative attraction of the unanimous
characteristic is over a critical threshold, maximal differentiation no longer
holds. Second, as the transportation cost is lowered, agglomeration forces
are intensified—both in social optimum and competitive outcome. Third,
since allowing competitive suppliers to determine their locations results in
suboptimal outcomes, the government may need to intervene with a subsidytax
scheme. However, the marginal benefit of the government intervention
would decrease with improvement in transportation system.