What are all the factors that could influence residential home prices across the United States over the next decade? And how? Organize your output in a MECE framework.

consulting McKinsey MECE MECE Principle
New answer on Aug 07, 2022
2 Answers
Anonymous A asked on Aug 06, 2022

I have been given a project I am new to MECE framework, Could do with some help regarding this


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replied on Aug 07, 2022
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Option 1

Bucket 1: Supply

Bucket 2: Demand

Option 2

Bucket 1: Macro factors outside US 

Bucket 2: Macro factors inside the US

Option 3

Bucket 1: Consumer confidence

Bucket 2: Builder confidence

Bucket 3: Availability of money

Bucket 4: Availability of materials (lumber, labor, etc.)

Option 4

Bucket 1: Government factors/influence (fiscal + monetary)

Bucket 2:  Business behavior

Bucket 3: Consumer behavior

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Anonymous B replied on Aug 06, 2022

I would start with Macro vs Micro factors

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Ian on Aug 07, 2022

Unfortunately micro factors doesn't work here. By it's very definition micro is on the micro level :)

Anonymous B on Aug 07, 2022

"Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms" The term might be misleading but it captures supply-demand factors and there are several YT videos and articles, if you google, on microeconomic factors affecting res. house prices. I would actually point out to your post that macro factors outside US are unlikely to play a significant role.

Anonymous B on Aug 07, 2022

Macro factors would be recession, stagflation..., changing demographics, interest rate, technological improvements...