Housing has a heterogeneous nature to supply the human needs of sheltering, security, comfort, so-cialization, self-expression and ‘aesthetics’. Be-cause of this heterogeneous nature, the housing issue has been investigated in an interdisciplinary area by researchers who are specialized in urban design, economics, planning, and real estate mar-kets. When dealing with economic value of houses, re-searchers have been aiming to identify the factors (such as physical characteristics related to neigh-borhood and house) that affect house prices via hedonic price method. When dealing with aesthetic value of houses, re-searchers have been aiming to understand how formal (complexity, coherence) and symbolic (naturalness, openness, safety, upkeep, nuisance) variables affect people’s conceptual values (pleasantness, arousal, excitement, relaxing. However the relation between environmental aes-thetics and housing prices has been neglected. This study aims to merge these two separate liter-atures and investigate the impact of environmental aesthetics on housing prices using the hedonic price metod. In Karsiyaka, Izmir, a survey was conducted with 18 randomly selected real estate agents. With this survey, data related to sale and rental prices and physical characteristics of 48 rented and 52 sold apartments’ were collected. Then using the photographs of the buildings and their vicinity, an environmental aesthetic survey was prepared. Some apartments were in the same building. Thus, instead of 100 buildings, 85 were photo-graphed. 101 high school students evaluated the aesthetic quality of each building via those photograph. The students were asked to evaluate the exterior quali-ty of the building itself (pleasant, arousal, excited, complexity, the exterior quality of the building vicinity (pleasant, arousal, excited, relaxing, com-plexity, coherence, naturalness, openness, safety, upkeep, and nuisance), desirability, estimated price (sale and rental) and familiarity with build-ing itself and its vicinity. It was impossible for a student to evaluate 85 buildings for a diversity of aesthetic measures; each student evaluated 17 buildings which were selected with stratified random sampling method. The buildings were shown to participants in dif-ferent orders to minimize the order effect. The data derived from real estate agents and stu-dents were combined and analyzed with hedonic price model. This model was applied separately for rented and sold houses with four different functions (linear, log-linear, linear-log, log-log) and the model that gives the highest R² value was selected as ‘general model’. Then the aesthetic variables were eliminated from this general mod-el to form the ‘restricted model’. When restrict-ed model and the general model were compared via F test, the results showed that aesthetic vari-ables were important in explaining the variation in house prices (both sold and rental) signifi-cantly. This study indicates that environmental aesthetics shouldn’t be ignored in research on house prices. The methodology used in this study might inspire future research to bring together the two separat-ed (but also related) literatures; environmental aesthetics and house prices. A useful extension of this study might extend the sample size; apply the methodology in different regions and to different groups of houses. Per-haps, the impact of aesthetic variables on house prices changes by culture and economic status of potential buyers. Future studies might also investigate whether the value of aesthetic variables are more pronounced for higher value houses than lower value houses. The results should interest researchers from vari-ous disciplines including economics, real estate, planning and urban design. Keywords: Environmental aesthetics, house pric-es, hedonic price method.