Affordability is measured in terms of disposable income, In the context of housing, affordability means the financial capacity of an individual to buy or rent a house. In 2008, the High Level Task Force on Affordable Housing for All, setup by the Government of India, defined affordability as a measure of household gross annual income and the size of a housing unit. It recommended that for economically weaker section and low income groups, the suggested affordability is cost not exceeding four times of the household gross annual income and EMI/ rent not exceeding 30% of the household’s gross monthly income for a unit with carpet area not exceeding 300 and 600 sq.ft. For middle income category of houses, the cost was recommended as five times the household gross annual income and EMI/ rent not exceeding 40%, for a prescribed carpet area not exceeding 1200 sq.ft.

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 techniques. Low cost housing can be considered affordable for low and middle income earners if household can acquire a housing unit. The low-income groups in developing countries are generally unable to access the housing market. 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 life. It should be noted that low cost housing are not houses which constructed by cheap building materials of substandard quality. A low cost house is designed and constructed as any other house with regard of foundation, structure and strength. The reduction in cost is achieved through effective utilization of locally available building materials and techniques that are durable, economical, accepted by users and not requiring costly maintenance.

Low cost housing is a new concept which describes affordability of housing in terms of disposal income and gives the technique to reduce the cost of construction. Low cost housing is beneficial for EWS and LIG. Keywords- Low Cost Housing, Affordability, Literature Review, Case Study, Estimation, Analysis, Construction Techniques.