The low-income groups in developing countries are normally is not able to access the housing market and the cost effective housing is a relative concept and has more to do with budgeting and seeks to reduce construction cost through better management, appropriate use of local materials, skills and technology but without sacrificing the performance and structure of house. It should be noted that low cost housings are not houses that constructed by cheap building materials of substandard quality.

A low cost house is designed and constructed as any other house with regard to foundation, structure and strength. The new construction methods may be formulated like foundation, walling, roofing and  and durability of the structure, stability, safety and mental satisfaction are factors that assume top priority during cost reduction. The construction cost can be saved by using low cost housing technologies  with the traditional construction methods. This proves that using low cost housing technologies is a cost effective construction approach for the housing industry.

Low-cost housing is a new concept which deals with effective budgeting and following of techniques which help reducing construction cost through the use of locally available materials along with improved skills and technologies without sacrificing the strength, performance and life of the structure (Kumar, 1999; Civil Engineering Portal, 2008). Low-cost housing technologies aim to cut down construction cost by using alternatives to the conventional methods and inputs. It is about the usage of local and indigenous building materials, local skills, energy saver and environment-friendly options.