New Zealand and the Pacific Nations, like many other areas worldwide, have a problem providing affordable and sustainable housing that also meets occupants’ needs. Low-cost housing often equates with underperformance. In the minds of many people, building performance that meets real needs is something that they simply cannot afford. This paper argues that with good design, appropriate use of innovative materials, and the innovative use of traditional materials, it is possible to design and deliver good quality housing that is affordable.