The housing industry and housing production in Egypt are facing a catastrophic situation. Nobody can deny the housing problems in Egypt. More than 80% of Egyptians are living in slums. Around 20% of all Egyptians are living in non-healthy homes ((ECES), 2010). Billions of US dollars are spent every year in building new, high-style compounds in Egypt which leads to a recession of selling these units. The whole world is now focusing on sustainability and has started renovation and replacement programmes for housing. On the other hand, in Egypt we are still looking to meet the housing demand. Housing problems in Egypt are not related to low investment in this sector, but to the wrong direction for this housing investment. In other words, the production is focused on only one housing sector, which is only around 10% and the supply is more than the demand, however it costs more and more than all other types of housing. In addition to the wrong policies, all house construction is focused on one type of construction which is reinforced concrete (post and lintel), casting on-site (Stephen Everhart, June 2006). This research will present different types of sustainable construction for all housing types as one of the key solutions, and also to meet market demand and to solve this problem in the right way.