Low cost housing is a global need affecting people from both rich and developing countries. Achieving affordable houses for low income people is a complex problem with many facets. Cost factors vary among project locations and are basically the same as for ordinary construction: land costs, design and management costs, construction costs, promotion costs, utilisation costs and taxes. Constructions costs include usual production costs like labour, material and equipment costs. Efforts essentially concentrate on getting the best project solution that lead to the minimisation of each cost factor, therefore making use of the most efficient solutions. This paper reports the experience of a set of 12 low cost houses built by Habitat organisation in Palmeira, Portugal. The paper introduces the Portuguese branch of Habitat, explains how it develops its action and describes construction methods and materials used in that project. The work of volunteers and the support of local authorities is highlighted as a key aspect for project success.