This paper presents a two-stage research to model the different priorities and expectations about living environment preferences of the inhabitants of Istanbul, Turkey's largest metropolitan with a population of 10 million. In the first stage, a modified hierarchical information integration approach was used to estimate the utilities of different attributes for each individual sampled from the inhabitants of Istanbul. This is a decompositional approach and involves measuring individual preferences. In this study, not only aggregate results are reported but also a segmentation study is carried out to explore the heterogeneity in respondents' preferences. Identification of such segments would help planner offer different planning options to groups with different preferences. Thus, the second stage of this study consists of identifying distinct groups of inhabitants with different preference structures by using cluster analysis. The resulting information is believed to be more useful especially to understand diverging demands of inhabitants of Istanbul.