The goal of the Project on Demographics, Housing, and the Welfare of the Elderly is to determine the effects of a declining birth rate and aging population on the housing market, and through the characteristics of this market on the welfare of successive cohorts of elderly, via changing user cost of housing, changing wealth generated by real capital gains, and changing savings behavior in response to perceptions (and misperceptions) of housing market prospects. The specific aims of the project are to (1) collect demographic and housing market data over a long time period, (2) build a demographic model that can be used to drive a housing demand model several generations into the future, (3) estimate a structural model of housing demand and supply that takes demography into account, (4) and use this model to analyze the welfare impacts on elderly cohorts. The results should be useful in identifying future policy issues, such as poverty rates among the elderly, and in analyzing the impacts of policies affecting housing wealth and savings, such as changes in capital gain taxes or in the tax treatment of savings.