PurposeThe cost of housing is very high in Yemen compared with Middle East countries, which has caused a shortage of housing supply, especially for the low‐income group. The purpose of this paper is to identify factors that are significantly influencing housing cost in Yemen.Design/methodology/approachThe study surveyed 60 professionals in housing in Yemen, to identify factors influencing housing cost that are related to land, materials used, construction methods used, finishing works, and other factors/related issues. The questionnaire survey instrument consisted of 32 factors, which were grouped into these five categories. The level of importance was measured and the relative importance of weightage was ranked for all five categories.FindingsThis study found that cost of project land, cost of cement and steel for reinforced concrete are the most significant factors influencing housing cost in Yemen.Originality/valueBased on the analysis of the ranking and intensity of housing cost factors, this paper further suggests possible improvements for decreasing the housing cost in Yemen. These recommendations are hoped to increase more regulated housing development and housing policy.