This paper explores a new methodology for defining housing quality through constructing the 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 quality of housing index (QHI) comprises of four dimensions. The study uses country-wide unit record data (PSLM-VI: 2010-11) collected at household level. This study concluded that age, income, education of the head as well as family's education have significant impact on the quality of housing. Specifically, family's education contributes to the quality of housing at household level. Moreover, the households enjoy 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.

Poverty is multidimensional and more complex concept. The researchers have sufficiently explored the causes of poverty, but still have to be explored in the context of effects of poverty. There is increasing consensus that the income and/or consumption measures do not fully capture the qualitative dimension of poverty such as the lack of comfort, education, health, housing, personal safety, and social inclusion etc. Usually the poor has inadequate health and education facilities, low housing facilities and the other similar ills. This paper explores the housing condition of the poor by constructing the quality of the housing index (QHI). This QHI is very detailed and comprehensive incorporating the various dimensions in depth including housing facilities, distance of the facilities available to the house, frequency of the use of these facilities and perception about the services available to the households. This paper will use the recently available country-wide micro-level data collected by Pakistan Bureau of Statistics under the title of Pakistan Social and Living Standards Measurement Survey (PSLM): Round VI (2010-11). It is concluded that urban non-poor residents who live in ketcha houses have the highest quality of housing, on average. Second, the urban non-poor households come who have both the land line and mobile facilities. The third rank is observed in the rural non-poor households who use gas as a source of cooking food. The worst quality of housing is found in rural poor households who have almost no regular source of lighting in their houses.