A rational comparison between various types of lower cost housing with special reference to the effect of building codes thereon. This paper is based on research carried out by the author on the analysis of future draft building codes (1, 2, 3, 4) to study the simplification of their structure and increase their effectiveness for all types of housing. A supplementary component of the research was the performance and specification issue in building codes. However, this discussion will begin with a brief examination of the sources of housing production costs and a conceptual decision making process to achieve the housing production process with the lowest cost. The relationship of lower cost housing to the structure of building codes can then be viewed more objectively. The cost of housing is being considered as cost to the purchaser as a capital sum (or equivalent capitalization of rent from a period of time) of a house ready for use. The cost of various prerequisites such as land and financing are not being considered here. Stated conversely, this can be expressed as the producer’s price of a house in the market place, at that location, at that time. To categorize housing into types being produced today means classifying a considerable variety of end products. Classifying housing by its relationship to its degree of cost requires the use of the criterion of “Production Process”, as it is there that the intrinsic costs are created by the consumption of resources. As analyzed by the criterion of Production Process for simplification of discussion there can be considered to be four major groups of contemporary types of housing in the United States. The cost of housing is being considered as cost to the purchaser as a capital sum (or equivalent capitalization of rent from a period of time) of a house ready for use. The cost of various prerequisites such as land and financing are not being considered here. Stated conversely, this can be expressed as the producer’s price of a house in the market place, at that location, at that time.