expert

Udayan

100% Recommendation Rate

30 Meetings

USD 149 / Coaching

2

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

• Date ascending
• Date descending

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

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

Pls clarify what do you mean by empty household

Pls clarify what do you mean by empty household

## Related BootCamp article(s)

### 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

1 Q&A

## Related case(s)

### Oliver Wyman case: Full Electrons Ahead

Solved 68.5k times | Rating: (4.6 / 5.0)

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 43.3k times | 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 27.7k times | 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 13.6k times | 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

### O&C Case: Build-up of pharmaceutical company

Solved 4.5k times | Rating: (3.9 / 5.0)

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