Elderly persons now comprise over 20% of the population, making Japan the world’s most aged society. As people live longer, major life events are being postponed, households are shrinking in size, and spousal relationships are diversifying. Growing lifestyle diversity is radically altering housing needs and expectations. Looking ahead, housing demand will revolve around the elderly, with new demand from small households growing in prominence. We examine the implications of increased longevity for the life cycle, family, and residence in the gracefully aging society.