The chief aim of this project is to redesign a comprehensive housing market microsimulation model that will provide policy analysts with a capacity to anticipate the quantitative impacts of economic and policy changes on the drivers of housing supply and demand and housing tenure outcomes; and provide reliable estimates of government budgetary cost or savings from proposed reforms. A microsimulation model uses data records containing the socio-economic and demographic characteristics of decision makers (persons, households, income units) to analyse choices in different settings or scenarios with respect to important parameters (interest rates, capital appreciation rates, tax rates and inflation, for example). In 2003 we designed such a model – AHURI-3M (AHURI Housing Market Microsimulation Model) – using the confidentialised unit records of the Australian Bureau of Statistics (ABS) 1997 Rental InvestorsSurvey and 1996-97 Survey of Income and Housing Costs. In this project we redesign AHURI-3M to incorporate several new features.