The economic factors have influenced the construction industry badly in many parts of the world and the construction materials are rare and much expensive. The people who are living in Addis Ababa city are badly suffering from an increasing shortage of houses. The people who are belonging the low-income category living in the city are not capable to alter and construct a new home by using conventional construction materials technologies due to the high costs of materials. The government has tried to eliminate this problem and has not been successful due to materials cost escalation and other economic factors. Although researchers are searching for low-cost materials as a substitute or alternative for the present situation.

The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction. Over the last five, or so decades, developing countries in particular have experienced phenomenal growth of urban areas partly due to policies that have tended to favor urbanization as an engine of rapid development (Duranton, 2008). Residential construction practices, technologies, and resources must conform to local building authority regulations and codes of practice. Constructions in Ethiopia are ancient phenomena. Ancient time the people of Ethiopia constructed their home from locally available materials such as stone mud, timber, grass and ash. In modern Ethiopian construction, the construction sector increase dramatically. Most construction are constructing by using stone, timber, concrete, brick and steel. Now day the industries stick on these materials. The cost of this materials increase day to day and cover half and above cost of construction.