ABSTRACT Residential behaviour in a large Italian region is investigated focusing on tenants' judgement about their present condition and, if negative, the decision whether to move or stay. Housing needs and tastes, which explain residential mobility, are assumed to vary with households’characteristics. The paper suggests a specific procedure to find the relevant demand segments. A distinct logit model for each segment tries to explain satisfaction for current dwelling. For unsatisfied households, the propensity to move is modelled as a function of both level of dissatisfaction and factors expressing inertia.