Adequate shelter for all people is one of the pressing challenges faced by developing countries. India is currently facing a shortage of about 17.6 million houses. The dream of owning a house, particularly for low-income and middle-income families is becoming a difficult reality. Hence, it has become a necessity to adopt cost-effective, innovative, and environment-friendly housing technologies for the construction of houses and buildings for enabling the common people to construct houses at affordable cost. This paper compares construction cost for the traditional and low cost housing technologies. Case studies in India are used for the investigation. Construction methods of foundation, walling, roofing and lintel are compared. Strength and durability of the structure, stability, safety and mental satisfaction are factors that assume top priority during cost reduction. It is found that about 26.11% and 22.68% of the construction cost can be saved by using low cost housing technologies in comparison with the traditional construction methods in the case studies for walling and roofing respectively. This proves that using low cost housing technologies is a cost effective construction approach for the industry.