expert
Expert with best answer

Udayan

100% Recommendation Rate

19 Meetings

74 Q&A Upvotes

USD 149 / Coaching

How can I market size the number of empty houses in a country? As in how many houses/appartments are currently empty.

Anonymous A asked on Oct 10, 2019 - 2 answers
2 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Udayan
Expert
updated his answer on Oct 11, 2019
Ex McKinsey EM with 7 years of recruiting experience/ received all 3 MBB offers/Real MBB cases
Book a coaching with Udayan

100% Recommendation Rate

19 Meetings

74 Q&A Upvotes

USD 149 / Coaching

I believe what you are asking is the % of homes in a country that are vacant/not occupied

One way to approach this question -

Estimate number of houses

  1. Look at overall population
  2. Divide population into number of households (e.g., 3 or 4 people per household on average)
  3. In a perfect world 100% of households have houses
  4. Now you can apply discounts as needed - for example, if you are only looking at single family homes then there will be a discount as a lot of people living in cities live in condominiums
  5. If you are taking all types of accommodation then you will apply a positive multiplication factor as condos tend to have fewer than 3 or 4 people in them

Now you want to look at vacancy rate

  1. Factors that affect vacancy
    1. Oversupply of homes
    2. Declining population
      1. Aging population
      2. Net migration
    3. Urbanization

Look at factors that impact the country in question

  1. E.g., if it is oversupply you can look at why (low interest rates leading to building boom and ghost towns, or people owning multiple homes, or new towns being built etc)
  2. Either apply a relevant discount factor to the total homes (e.g., 5% homes are vacant because of multiple home ownership - you will have to have some rationale as to why)
  3. Or try and calculate what these might be if you have relevant information - (e.g. number of new homes built vs population growth rate)

Hope this helps,

Udayan

(edited)

Great Answer, thanks!!! — Anonymous on Oct 11, 2019

Vlad
Expert
replied on Oct 10, 2019
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School
Book a coaching with Vlad

98% Recommendation Rate

359 Meetings

5,126 Q&A Upvotes

USD 229 / Coaching

Pls clarify what do you mean by empty household

Related BootCamp article(s)

Market Sizing

Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.

1 Q&A

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

1 Q&A

Related case(s)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Bain Case: Old Winery

Solved 36.5k times
4.4 5 957
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

Roland Berger Case: Onlinestar

Solved 22.5k times
4.3 5 491
| Rating: (4.3 / 5.0)

Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b ... Open whole case

TKMC Case: Elevators

Solved 11.1k times
4.2 5 1100
| Rating: (4.2 / 5.0)

Your customer is the market leader in the North American elevator service business. This is divided into the areas of elevator construction, elevator modernization and service. The customer has a particularly strong branch network in medium-sized cities and would now like to expand its business in ... Open whole case

Our client Pharma Finance just finalized its first investment round and received $ 40m to invest in the build-up of a pharmaceutical manufacturing company. The CEO is mainly interested in high margins and profitable markets, with a sustainable and green production. This is why he wants you to find o ... Open whole case