(edited)
How do you size U.S real estate market in 5-10 years?
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Hello!
I would always recommend you to give it a shot and then post it here, this would help you the most.
This is a very typical market sizing case, where the key steps are:
- Calculate the total population
- Calculate # people in a household (~3) and # of houses owned per household
- Calculate the # of transations per year
- Estimate growth
Calculate the % of the total adressable market that any firm in particular could have -in case it´s asked only-.
Hope it helps!
Cheers,
Clara
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Hi there,
For this one you can either measure it now and incorporate a growth rate, or measure it in 5-10 years.
Here is how I would break it down:
- US population
- # of US households
- Split by life stage (single i.e flatshare, young couples, families, empty-nesters)
- AND split by income
- Then, get a % of each that would own a primary home
- Remaining % would rent
- This is a good estimate for the total # of houses/apartments...of course, make sure to divide by 2 or 3 for the groups that share
- Then, estimate the value of the properties in #5/6/7 to get your answer
Note: Normally splitting by TWO segments is not advised. However, just segmenting by age/life stage OR income is too simplistic here in my view.
Note 2: It's easy to let this get over-complicated. Make sure you structure your math in a clear/organized way...stay as simple as possible!
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