Abstract: This article presents a land use and transport interaction model (LUTI model) to simulate the overall equilibrium of an urban system. The proposed system of integrated models combines random utility theory with hedonic regression techniques and a transport model with equilibrium between supply and demand to estimate the location of population, economic activities, and average real estate prices in different zones within an urban system. The LUTI model was applied to the metropolitan area of Santander (Spain) to check its base year goodness of fit and therefore its ability to predict the impacts of introducing different transport policies. In the case of Santander, the property price and population/economic activity location submodels showed sensitivity to the different accessibility and transport characteristics of each zone, and the model as a whole provided a good degree of fit.

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