This paper explores a new methodology for defining housing quality by constructing a comprehensive index by using the four dimensions. These dimensions include not only the internal as well as external conditions of the houses, but also incorporate the public provisions of the housing facilities available to the community as well as users’ perceptions about these facilities. Thus, the dependent variable of the quality of housing index (QHI) comprises of four dimensions. The study uses country-wide unit record data (PSLM-VI: 2010-11) collected at the household level. This study concluded that age, income, education of the head as well as family’s education have a significant impact on the quality of housing. Specifically, family education contributes to the quality of housing at the household level. Moreover, the households enjoy a higher quality of housing living in pucca houses, in own-houses, or in urban areas. Conversely, the poor are badly stricken for the housing quality.